🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥

Startup Showcase

Premium Content

Try our Valuation Calculator →

News on Medial

Despite numbers, Zomato must tweak Gold to cut profitability drag, say experts

Economic Times

Economic Times · 1y ago

Despite numbers, Zomato must tweak Gold to cut profitability drag, say experts

Analysts and experts suggest that Zomato's loyalty program, Gold, needs adjustments to avoid negatively impacting the company's profitability. While Gold contributes to a significant portion of Zomato's food delivery gross order value, the program's benefits result in lower profitability compared to non-Gold orders. Zomato's CFO acknowledges the need for improvement, aiming to increase margins from Gold customers without hindering growth. The discount-led strategy used to drive Gold adoption led to higher-than-expected membership numbers. Going forward, Zomato plans to slow down the pace of Gold membership growth and reduce the margin gap between Gold and non-Gold orders.

Related News

Food and grocery delivery companies cash in on subscriber base

Economic Times

Economic Times · 6m ago

Food and grocery delivery companies cash in on subscriber base

Zomato and Swiggy are leveraging their growing subscriber bases, driven by loyalty programs, to monetize their platforms. Zomato Gold and Swiggy One contribute significantly to order volumes, with millions of subscribers engaged. While driving sales growth, these programs impact margins due to discounts and free deliveries. To counteract, they're collaborating with brands for ad revenues and offering personalized benefits. Despite quick commerce growth, food delivery remains key for profitability amidst competition and cash burn challenges.

Zomato Gold Members Surge to 38 Lakh

Inc42 · 1y ago

Zomato Gold Members Surge to 38 Lakh

Zomato Gold, the customer loyalty program of foodtech giant Zomato, has gained 3.8 million members since its launch in January. The company revealed that Gold members now contribute around 40% of the gross order value of its food delivery vertical, amounting to INR 3,192 crore ($430 million) during the quarter ended September 2023. However, Zomato noted that Gold orders are less profitable due to program benefits, such as free deliveries. Despite this, Zomato reported its second profitable quarter, posting a profit after tax of INR 36 crore ($4.8 million).

Gold loan startup Rupeek is staring at a down round

Economic Times

Economic Times · 1y ago

Gold loan startup Rupeek is staring at a down round

Gold loan startup Rupeek, backed by Peak XV Partners and Accel, is reportedly in discussions with existing and new investors for a new funding round. The company, previously valued at $600 million, may see a significant cut in valuation of up to 40-50% due to regulatory changes and lackluster growth in the industry. This potential down round comes as the Reserve Bank of India barred IIFL Finance from disbursing gold loans, causing caution among market players. Rupeek's assets under management have also stagnated in the current fiscal year. Despite these challenges, the company remains focused on profitability.

Zomato tweaks Gold loyalty programme

Economic Times

Economic Times · 1y ago

Zomato tweaks Gold loyalty programme

Food delivery platform Zomato has made changes to its loyalty program, Gold. Starting from November 25, 2023, the "on-time guarantee" benefit will no longer be included for new memberships or renewals. Existing Gold members will continue to enjoy the benefit until their renewal. Zomato's rival, Swiggy, also offers a subscription service called Swiggy One, which provides discounts and free delivery. The Gold membership has been an important driver of Zomato's sales, but the company is making adjustments to improve profitability.

10-Minute Food Delivery: Why Swiggy Is Still Betting on Bolt While Zomato Walks Away

OutlookIndia

OutlookIndia · 2m ago

10-Minute Food Delivery: Why Swiggy Is Still Betting on Bolt While Zomato Walks Away

Swiggy and Zomato have diverged in their approach to 10-minute food delivery services. Swiggy continues to invest in its Bolt service, which contributes 12% to its food delivery volumes, seeing it as a growth opportunity. In contrast, Zomato has exited the segment due to profitability challenges. While Swiggy aims to enhance market share through Bolt, industry experts question the long-term viability and profitability of such quick delivery models.

Mutual funds ramp up stakes in new-age companies by 2-3X as PE/VCs head out

Money Control

Money Control · 2y ago

Mutual funds ramp up stakes in new-age companies by 2-3X as PE/VCs head out

Improvement in profitability and funding winter attract mutual funds to firms like Paytm, Zomato, Nykaa, PB Fintech, Delhivery. Experts say MFs might look to ramp up holdings further in these new-age stocks

Can Zomato Recreate The Blinkit Magic With District?

Inc42 · 11m ago

Can Zomato Recreate The Blinkit Magic With District?

Zomato plans to launch a new app called District to capitalize on cross-selling opportunities, inspired by the success of Blinkit. Experts believe that Zomato's loyal customer base will readily adopt the new app, ensuring a strong user base. Although this may lead to increased advertising expenses, experts do not anticipate a significant impact on Zomato's overall profitability.

Is this right time to invest in gold? Here's what fund managers have to say

Money Control

Money Control · 1y ago

Is this right time to invest in gold? Here's what fund managers have to say

Gold exchange-traded funds (ETFs) in India experienced outflows totaling INR 395.69 crore in April, marking the first monthly outflow in a year. Despite this, fund managers believe that gold will continue to be a relevant and safe hedge for investors during periods of market volatility. Gold ETFs have historically grown during challenging times and the asset under management of these funds increased by about 150% in 2020. Additionally, the popularity of gold as an investment strategy is attributed to its exceptional performance, with the compound annual growth rate exceeding 50% in the domestic market.

Zomato Q3 results preview: Revenue likely to grow 61% YoY on food delivery

Livemint

Livemint · 1y ago

Zomato Q3 results preview: Revenue likely to grow 61% YoY on food delivery

Food delivery platform Zomato is expected to announce its Q3 financial results on February 8, with resilient numbers anticipated. The company is likely to have benefited from increased demand during festive periods and the World Cup event, as well as from orders through its Gold program. Analysts predict robust growth for Zomato's quick commerce division and will closely monitor projections for growth prospects, margins, and developments related to Blinkit. Zomato had seen significant sequential growth in Q2, with profits reaching ₹36 crore, and a 71% YoY surge in revenue.

Zomato Completes Liquidation of Czech Republic, Vietnam Subsidiaries

Inc42 · 1y ago

Zomato Completes Liquidation of Czech Republic, Vietnam Subsidiaries

Food delivery giant Zomato has completed the liquidation process of its subsidiaries in Vietnam and the Czech Republic. Zomato Vietnam Company Ltd and Czech subsidiary Lunchtime.cz s.r.o have been officially liquidated as of February 2 and February 6, 2024, respectively. This move comes as part of Zomato's strategy to close down international subsidiaries and cut costs in order to achieve and sustain profitability. Zomato recently reported a consolidated profit after tax of INR 138 Cr in the December quarter of 2023.

Trackers

Active Indian VC’s

OG Capital Email

With a hands-on approach, OG Capital aims to invest in over 20 promising...

Accel Partners Email

Early and growth-stage investments in disruptive technology companies with...

Early-stage venture capital firm investing in technology startups in India. Focus on...

Access All Trackers

Startup Showcase Winners

June 2025

Helping your parents when you are miles away

The Pit Stop Your Cravings Deserve

The next generation E-commerce platform

Enter Ongoing Startup Showcase

Top Users

Trending News on Medial

Meta acquires voice startup Play ...

Zomato CEO Deepinder Goyal buys l ...

Exclusive: Porter turns profitabl ...

Download the medial app to read full posts, comements and news.