In the final quarter of FY25, Eternal Ltd, previously known as Zomato, reported a massive 64% increase in operational revenue to Rs 5,833 crore. However, the celebration was cut short by a steep 77.7% year-on-year decline in quarterly net profit, which dropped to Rs 39 crore from Rs 175 crore a year earlier. This contrasting trend underlines the company’s aggressive investments in its fast-growing quick commerce arm, Blinkit, and other verticals.
Despite the profit fall, zomato’s overall performance for FY25 paints a strong growth story. Zomato consolidated operating revenue jumped 67% year-on-year to Rs 20,243 crore, while annual profit rose by 50% to Rs 527 crore. Blinkit was the standout performer with a 122% spike in revenue, but its losses widened due to network expansion and marketing efforts. Food delivery growth remained muted amid increasing competition and sluggish demand.
The company also shut down two underperforming experiments, Zomato Quick and Zomato Everyday, as part of a platform cleanup initiative. Hyperpure and the Going Out vertical showed promising numbers, while 19,000 non-compliant restaurants were removed to ensure quality.
Although profitability faced a dent this quarter, Eternal’s leadership remains optimistic about long-term value. With over 1,300 Blinkit stores now live and deeper expansion planned, the focus appears firmly on future growth rather than short-term earnings.
1. Eternal Ltd: Business Model, Founders, and Core Offerings
1.1 Origin and Founding Background
Eternal Ltd, originally founded as Zomato in 2008 by Deepinder Goyal and Pankaj Chaddah, began as a restaurant discovery platform. Headquartered in Gurugram, the company initially gained popularity by offering restaurant listings, menus, and user reviews. Over the years, it evolved into one of India’s top food delivery platforms.
1.2 Revenue and Business Model
Eternal operates through multiple verticals:
- Food Delivery: Connecting customers to restaurants via its platform.
- Quick Commerce (Blinkit): Fast delivery of groceries and everyday essentials.
- B2B Supplies (Hyperpure): Supplying raw materials to restaurants.
- Going Out: Events, restaurant dining, and lifestyle offerings.
Revenue flows in via commission from restaurants, delivery charges, advertising on the app, B2B sales, and premium subscriptions like Zomato Gold.
1.3 Funding and Valuation
The company has raised over $2.1 billion from marquee investors including Ant Group, Sequoia Capital, Temasek, and Tiger Global. Zomato went public in July 2021 and has since focused on strengthening its ecosystem, especially through Blinkit, which it acquired in 2022.
2. Q4 FY25: Key Financial Highlights
2.1 Zomato Revenue vs Profit Trends
- Revenue from operations: Rs 5,833 crore (up 64% YoY).
- Net profit: Rs 39 crore (down 77.7% YoY).
- Sequential revenue growth: Rs 5,405 crore in Q3 to Rs 5,833 crore in Q4.
- Full-year revenue: Rs 20,243 crore (up 67%).
- Full-year net profit: Rs 527 crore (up 50%).
Total expenses rose significantly to Rs 6,104 crore from Rs 3,636 crore YoY. The company ended Q4 with a cash balance of Rs 18,824 crore, down from Rs 19,235 crore in Q3.
2.2 EBITDA Insights
Adjusted EBITDA for the quarter declined 15% YoY to Rs 165 crore, mainly due to investments in expanding Blinkit’s store network and warehousing capacity.
3. Segment-wise Performance Breakdown
3.1 Food Delivery: Facing Headwinds
- Revenue: Rs 2,409 crore (up 17.5% YoY).
- GOV: Rs 9,778 crore (down 1.3% QoQ).
- Monthly transacting customers: 20.9 million (up from 20.5 million).
- EBITDA margin: Flat at 4.4%.
Challenges included weaker demand, fewer delivery partners, and rising competition from snack-focused models and quick commerce platforms.
3.2 Blinkit: Growth with Losses
- Revenue: Rs 1,709 crore (up 122% YoY).
- GOV: Rs 9,421 crore (up from Rs 7,798 crore in Q3).
- EBITDA loss: Rs 178 crore (up from Rs 103 crore in Q3).
- Monthly transacting users: 13.7 million (up from 10.6 million).
- Store count: 1,301 stores, with 294 added in Q4 alone.
- AOV: Declined to Rs 665 from Rs 707 in Q3.
CEO Albinder Dhindsa stated that the rising losses were planned, as nearly 40% of the current store network was built in the last two quarters and remains underutilized.
3.3 Going Out and Hyperpure
3.3.1 Going Out
- Revenue: Rs 229 crore (up 146% YoY).
- GOV: Rs 2,184 crore.
- Popular app “District” contributed to a third of GOV.
3.3.2 Hyperpure
- Revenue: Rs 1,840 crore (up 93% YoY).
- Q3 FY25 revenue: Rs 1,671 crore.
These segments are showing strong potential, especially with improved integration between platforms.
4. Strategic Updates and Platform Changes
4.1 Shutdown of Zomato Quick and Zomato Everyday
Eternal wound down its ultra-fast food delivery initiatives Zomato Quick and Zomato Everyday due to low demand, scalability issues, and a mismatch between infrastructure and execution speed.
4.2 Cleanup Measures
Nearly 19,000 restaurants were removed in Q4 due to hygiene concerns, duplicate listings, and impersonation. This move is aimed at improving platform integrity and customer trust.
5. Industry Context and Competitive Landscape
The Indian food and grocery delivery ecosystem is heating up. While Swiggy remains a key rival, newer models focused on packaged snacks and instant delivery are emerging. Eternal’s decision to double down on Blinkit reflects its strategy to capitalize on changing consumption patterns.
6. Learning for Startups and Entrepreneurs
6.1 Sustainable Expansion Is Key
Rapid growth, as seen with Blinkit, must be balanced with long-term sustainability. Startups should anticipate operational stress during expansion phases.
6.2 Customer Experience Over Speed
Zomato’s exit from ultra-fast food delivery shows that user satisfaction and infrastructure alignment matter more than mere speed.
6.3 Portfolio Diversification Works
By investing in B2B (Hyperpure), lifestyle (Going Out), and commerce (Blinkit), Eternal reduced its overreliance on food delivery—a lesson in revenue stream diversification.
6.4 Data-Driven Cleanups Build Trust
Removing non-compliant listings builds credibility and assures users of quality.
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