The quick buck promise of quick commerce

Blinkit’s performance in Zomato’s Q2 results has piqued investor interest in quick commerce. Is the profit-over-expansion model sustainable?

Zomato’s July-September quarter results for fiscal 2023-24 brought much cheer to the stock, which hit a 52-week high. The fact that its IPO investors finally saw it cross the listing price of Rs 115 nearly 2.5 years on was also a landmark. 

It has been a good run since January this year, with the stock steadily climbing on the prospect of profitability. In the April-June quarter results, announced in August, Zomato achieved a key milestone, turning in a positive “adjusted EBITDA” (Rs 12 crore) and a profit after tax (a modest Rs 2 crore). 

These sound like small numbers, …

Author

Ujval Nanavati

Ujval leads our Business vertical at The Morning Context. In a corporate career spanning 14 years, he has worked across startups, consulting firms, multinational corporations and large Indian companies, including India Infoline, ICICI, KPMG, Tata Steel and Jubilant Pharma. Ujval has been a freelance writer and trainer for eight years, with bylines in Forbes India and The Economic Times.

Editor, Business

ujval@mailtmc.com

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