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Jayant Mundhra
•
Dexter Capital Advisors • 1d
And I won against Zomato! A big victory today, as Zomato has finally revealed its Net Order Values 🙏🙏 People who have been reading my work over the last 26 months know how I have written so many viral posts to build awareness on how Zomato has been making a mockery of investors by sharing Gross Order Value stats which make no sense to reality. The problem with their GOV reporting? - Well, say you place an order for a Biryani with a Rs 599 price tag, which post discount is available at Rs 449 - And when you order, you are charged a platform fee, a delivery fee, and rain fee and also the taxes So, tell me what is the GOV? A sum of all of those. .. The problem? 1 - The tax part of the GOV is Govt’s revenue 2 - Delivery fee is the revenue of the delivery partner - as Zomato does not even pay GST on it - Govt is fighting this legally 3 - Even though you got a Rs 150 discount on MRP, GOV does not account for it And where does it get worse? Just in case you cancel the order, or if Zomato is not able to deliver its, even though the order did not make for any actual sale or revenue, Zomato would not remove it from the GOV. .. To solve this mess, it was very critical that Zomato start to report NOV - Net Order Value. That would remove the taxes, the discounts, and other such shenanigans ideally. And well, Zomato has party fulfilled that need after all these quarters. .. Why do I say partly? Zomato’s self-adopted definition of NOV only removes the discounts provided. Thus, it still includes the delivery fees (revenue of the delivery partner) and the taxes (revenue of the Govt) 🙏🙏 Hence, a lot more distance to cover. But still, some positive outcome after a long demand! .. Rest, one important bit - Go through all the concalls. Not one analyst from those big investors ever demanded that Zomato provide the data for net order values. Nor did anyone brokerage report, or anyone in media, or any influencer ever cover this super important aspect. My challenge - Go and search anywhere. You would not find anything. And that is what makes me feel good, and makes me call this a victory.
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