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During the quarter under review, Zomato’s quick commerce arm, Blinkit turned contribution positive for the first time. In Q2FY24, Blinkit’s contribution margin, as a percentage of Gross Order Value (GOV), rose to 1.3%, from -7.3 % in Q2FY23, when Zomato had acquired the instant grocery delivery service company. The GOV across B2C businesses (food delivery + quick commerce + Going-out) grew at 13% QoQ and 47% YoY, it said in its earnings report.
“GOV growth was largely driven by same-store sales growth as we continue to focus on serving more customer needs and ensuring consistency of service levels. We also saw a net addition of 28 new stores during the quarter, taking our overall store count to 411 stores as of the end of the quarter,” says Albinder Dhindsa, Founder & CEO, Blinkit.
Going forward, the company aims to break even in the quick commerce business by Q1FY25.
Meanwhile, the food delivery business reported adjusted revenue of ₹1,925 crore in Q2FY24 from ₹1,742 crore in Q1FY24. The food delivery GOV grew 9% QoQ and 20% YoY, driven by growth in order volumes and growing adoption of the Gold program (3.8 million members as of Q2FY24 end, which contributed around 40% of GOV in the food delivery business).
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