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<ul><li><keyword id="964794" type="General" weightage="20" keywordseo="bigbasket" source="Orion">BigBasket</keyword> would also be focusing on one hour delivery through bbexpress within a 6 kilometre radius.</li><li>The company will rely on its own dark stores for these operations and not rely on third- party stores.</li><li>BigBasket plans to launch 700 offline stores across India by the end of 2021.</li></ul>Online grocery delivery startup BigBasket — which was acquired by <keyword id="8555" type="General" weightage="20" keywordseo="tata" source="Orion">Tata</keyword> Digital last year — on Thursday announced its foray into 10-20 minute delivery through bbnow within a 1.5-2.5 kilometre radius. The bbnow service will sell over 3,000 products, the company said in a statement. Besides this, BigBasket would also be focusing on one hour delivery through bbexpresss within a 6 kilometre radius of the store. The bbexpress would offer over 8,000 products. The company will rely on its own dark stores for these operations. Dark stores are micro-fulfillment centres dedicated to rapid online order fulfillment. There is no cap on the number of products that one can order through these platforms, but typical order sizes average between 3-5 products and around ₹400 for the <keyword id="12724312" type="General" weightage="20" keywordseo="quick-commerce" source="Orion">quick commerce</keyword> deliveries, the company said. BigBasket will be a part of Tata Digital’s super app TataNeu. The Tata Enterprise company also emphasised that they have built a “massive” delivery network across India and it is constantly in expansion state. BigBasket launched a chain of offline stores in 2021 and 90 of them are already operational. The company now plans to launch 700 more such stores by the end of 2022. BigBasket was launched in 2010 as an online grocery supermarket. The company today covers an entire spectrum of grocery retail through quick-commerce, physical stores, alongside online grocery sales through the main BigBasket platform. “Apart from consumers who plan and buy their monthly groceries from bigbasket, there is a huge user base comprising those who make unplanned purchases, top-ups and impulse purchases. For impulse and emergency purchases, the bbnow service with its 10-20-minute delivery window is a great option…,” Hari Menon, cofounder and chief executive officer of BigBasket, said in a statement. BigBasket is the<a href="https://www.businessinsider.in/newsletter-23-december-2021/binewsletter/88440534.cms"> last big grocery delivery player</a> to enter the quick commerce space. Its rival Blinkit (previously known as Grofers) and Swiggy Instamart have already entered the <keyword id="12728042" type="General" weightage="20" keywordseo="10-minute-delivery" source="Orion">10 minute delivery</keyword> space in 2021. Besides this, there are companies like <a href="https://www.businessinsider.in/business/startups/news/mukesh-ambani-led-reliance-retail-[%E2%80%A6]0-million-in-google-backed-dunzo/articleshow/88734641.cms">Reliance-backed Dunzo</a> and Zepto who are working in the 10 minute delivery space to cater to the impulse and emergency space. SEE ALSO <a href="https://www.businessinsider.in/business/startups/news/dream11s-parent-marks-its-foray-into-web3-by-investing-in-cricket-nfts-startup-rario/articleshow/90972760.cms" data-type="tilCustomLink">Dream11’s parent marks its foray into Web3 by investing in cricket NFTs startup Rario</a> <a class="tout-title-link" href="https://www.businessinsider.in/stock-market/news/tata-steel-tata-elxsi-hcl-tech-nestle-india-and-other-hot-stocks-on-april-21/slidelist/90971002.cms">Tata Steel, Tata Elxsi, HCL Tech, Nestle India and other hot stocks on April 21</a> <a href="https://www.businessinsider.in/sustainability/article/indian-livelihoods-turn-less-green-sharp-decline-in-hiring-green-jobs-over-the-last-five-years-compared-to-the-global-average/articleshow/90971775.cms" data-type="tilCustomLink">Indian livelihoods turn less green! Sharp decline in hiring green workforce over the last five years compared to the global average</a>

Tata's BigBasket is finally joining Swiggy, Blinkit in 10-minute grocery delivery

<ul><li>After a couple of dull years and a few failures, online grocery in India is back with a bang. </li><li>SoftBank has put in fresh funds in Grofers while Reliance Industries Limited is reportedly looking to buy a majority stake in Grab. </li><li>Swiggy had recently announced its foray into online grocery delivery with Swiggy stores. </li></ul> There was a time when the online grocery vertical had become the hot favourite with major players trying their luck in the game. But soon with failures piling up one over the other, exits were announced. Come 2019 and it seems like it’s going to be the year hyperlocal grocery delivery again. Sector leader BigBasket may become the first unicorn – clock a valuation of $1 billion – of 2019, and food delivery startup Swiggy threw in its hat into groceries with Swiggy Stores. Swiggy, which raised a whopping $1 billion in funding in December, has already piloted the operations in Gurugram and has tied up with <a href="https://www.business-standard.com/article/companies/swiggy-takes-on-bigbasket-grofers-to-deliver-groceries-from-local-stores-119021201294_1.html">3,500</a> local stores. However, these startups will be battling the deep pockets of Mukesh Ambani and the Japanese Softbank. Reliance Industries Limited is <a href="https://timesofindia.indiatimes.com/business/india-business/ril-in-talks-for-majority-stake-in-startup-grab/articleshow/68192744.cms">reportedly</a> in talks to buy a majority stake in Grab, a hyperlocal delivery startup for groceries, medicines and food based out of Mumbai. Grofers has raised <a href="https://tech.economictimes.indiatimes.com/news/internet/grofers-raises-fresh-funds-from-existing-investor-softbank-as-e-grocers-valuation-hits-425m/68203728">fresh funds</a> from SoftBank Vision Fund (the Japanese firm had earlier too invested in the e-grocery company) which takes its valuation to $425 million. This excitement was missing in the space the last few years. E-grocery startup PepperTap had to shut its operations in 2016. In a blog on <a href="https://yourstory.com/2016/04/peppertap-journey-navneet-singh">YourStory</a>, Navneet Singh, founder of PepperTap, wrote about the problem they faced. “The integration of our app with our partner stores was not great. In the race to pepper the whole country with PepperTap, we had brought too many stores online far too quickly,” he wrote. Another unicorn startup Paytm too had explored the e-grocery space with Paytm Zip, only to shut shop in 2015. So, even with clear failures in the past, what makes today’s unicorns still find their way into the space? A simple answer - the demand still exists. Grocery stores aren’t called convenience stores for nothing. For today’s millennial who is busy with work to order groceries on a tap is an easy, convenient way out. A report on the online grocery space in India by Red Seer consulting states, “Inspite of all these disruptions and changes, one thing that did not change was the massive potential for online grocery- as indicated by India’s USD 500+ Bn grocery market out of which a mere 0.2% is online (~USD 1.2 bn overall and ~USD 1 Bn considering only hyperlocal grocery).” The proof that it still works is seen in BigBasket’s <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/bigbaskets-wholesale-unit-revenue-up-35/articleshow/67358734.cms">revenue</a> report. In the year 2017-18, BigBasket saw its revenue grow by 35% while losses dropped by 53%. In FY19, the company expects the revenue to grow by <a href="https://www.moneycontrol.com/news/business/companies/bigbasket-chief-hari-menon-expects-75-revenue-jump-in-fy19-to-rs-3500-crore-3183251.html">75%</a>. Grofers which had posted a net loss of <a href="https://tech.economictimes.indiatimes.com/news/internet/grofers-narrows-loss-to-rs-258-cr-as-sales-double-in-fy2018/68105608">₹268 crore</a> in FY 17, managed to post a loss of ₹258 crore in FY18. The company has also added <a href="https://www.moneycontrol.com/news/business/grofers-eyes-rs-2500-crore-revenue-in-fy19-adds-2-5-lakh-new-customers-in-january-3453911.html">2.5 lakh</a> new customers in January, while also aiming for a revenue of over ₹2500 crore. And with big backers like Mukesh Ambani and Softbank entering the fray, the competition, too, will be intense. The battle for dominance may mean more discounts and cashbacks for consumers. See Also: <a href="https://www.businessinsider.in/swiggy-in-talks-to-acquire-ubereats-india-operations/articleshow/68110377.cms">Swiggy wants more on its plate, in talks to acquire Ubereats India</a> <a href="https://www.businessinsider.in/for-indian-startups-2018-has-been-a-year-of-bouncing-back-as-venture-capital-funding-doubles/articleshow/67286540.cms">For Indian startups, 2018 has been a year of bouncing back as venture capital funding doubles</a> <a href="https://www.businessinsider.in/these-are-the-25-most-sought-after-startups-in-india-report/articleshow/65866420.cms">These are the 25 most sought after startups in India: Report</a>

Online grocers are back in business in India with billions more to burn – and that may be good for consumers

Food delivery platform Zomato on Tuesday refuted reports that the company is in talks with Gurugram-based grocery delivery platform Grofers to acquire it for nearly $750 million. Flush with funds, Zomato has partnered Grofers for the delivery of essential items – along with other FMCG and grocery stores -- to meet the surge in demand amid social distancing and nationwide lockdown that has now been increased till May 3. In a statement shared with IANS, Zomato said that the company has partnered with Grofers, along with other FMCG companies, local groceries stores and modern retail chains, to pilot its grocery delivery service. "We are not aware of any other conversation with Grofers," a Zomato spokesperson added. After initial hiccups, Zomato has started grocery delivery in over 80 Indian cities with supplying essentials like aata, dal, milk, vegetables and items. According to Prabhu Ram, Head-Industry Intelligence Group, CyberMedia Research (CMR), companies are looking at creative pivots to stay relevant by pursuing new growth opportunities on the back of the new coronavirus pandemic. "Expanding into near adjacencies is a given for companies, such as Zomato. From Zomato's perspective, a partnership or acquisition of Grofers would provide it a good leg-up in its competition with Swiggy to win big in the grocery delivery segment," Ram told IANS. Online food and grocery retail is expected to touch $10.5 billion by 2023, according to a recent report by Bengaluru-based market consulting firm Redseer. Zomato CEO Deepinder Goyal who is bullish on online delivery of essential items, has said that their delivery network in the country is only second to India Post. "We we are putting in every effort to make sure that we put it to good use to serve the community. We'd like to thank the government authorities, grocery stores, FMCG companies &amp; other start-ups that have come forward to partner with us and support the community in this endeavor," Goyal said recently. Zomato is currently valued at nearly $3.2 billion while Grofers' valuation is around $650 million. Menlo Park, California-based Sequoia Capital is a common investor in both the delivery platforms. Zomato in January acquired Uber's Food delivery business in India – UberEats -- in an all-stock deal for nearly Rs 2,500 crore. Uber has 9.99 per cent stake in the Goyal-led food delivery platform. Japanese conglomerate SoftBank, the largest investor in Grofers, is also likely to pump in around $100 million in Zomato. Media reports said last week that Zomato has raised $5 million from British investment manager Baillie Gifford's Pacific Horizon Investment Trust. Zomato earlier raised $150 million from existing investor Ant Financial, an affiliate of Alibaba. The company has also launched the ‘Feed the Daily Wager' initiative to support and ensure meals for workers at construction sites, shops, restaurants, delivery staff, and local transport systems who earn on daily basis. As part of this campaign, the food delivery giant is providing ration kits to the daily wager communities that are currently unable to support their family's food requirement.

Zomato denies rumours about Grofers acquisition deal amid surge is grocery orders

<ul><li>With <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword> Quick, the company will now deliver groceries, phones, stationery, electrical appliances, and more – within 90 minutes. </li><li>Flipkart Quick will begin operations in select locations in Bengaluru.</li><li>Flipkart’s hyperlocal foray comes at a time when the sector has seen the entry of <keyword id="8506093" type="UNKNOWN" weightage="20" keywordseo="Jiomart">JioMart</keyword> – Reliance’s bet on e-commerce, and already had the presence of the likes of Google-backed <keyword id="3275685" type="PERSON" weightage="20" keywordseo="dunzo">Dunzo</keyword>, SoftBank-backed <keyword id="2466939" type="PERSON" weightage="20" keywordseo="Grofers">Grofers</keyword>, and <keyword id="964794" type="COMPANY" weightage="20" keywordseo="BigBasket">BigBasket</keyword>.</li></ul>Indian e-commerce giant Flipkart’s latest offering is in the <keyword id="2917849" type="PERSON" weightage="20" keywordseo="Hyperlocal-delivery">hyperlocal delivery</keyword> space. With Flipkart Quick, the company will now deliver groceries, phones, stationery, electrical appliances, and more – within 90 minutes. Charging a minimum delivery fee of ₹29, customers can choose 2-hour slots or get their orders within 90 minutes between 6 am and midnight. Flipkart Quick will begin operations in select locations in Bengaluru – Whitefield, Panathur, HSR Layout, BTM Layout, Banashankari, KR Puram, and Indiranagar. “While we start with our dark store (no walk-in) model, wherein we enable sellers to store inventory close to the consumer; this model has the potential of encouraging local entrepreneurship and enabling new business strategies and partnerships. Today, with Flipkart Quick - our Hyperlocal capability, we have the potential to bring together the whole network of neighbourhood Kirana stores onto our platform with just a click,” said Sandeep Karwa, Vice-President, Flipkart. This adds to the string of latest releases from Flipkart – it recently bought out Walmart’s India business, forayed into social commerce with its refurbished goods platform 2GUD and also acquired a stake in Arvind Fashion for ₹260 crore. However, Flipkart’s hyperlocal foray comes at a time when the sector has seen the entry of JioMart – Reliance’s bet on e-commerce, and already had the presence of the likes of Google-backed Dunzo, SoftBank-backed Grofers, and BigBasket. Been in the making for over a year Flipkart has been making several bets to ready its hyperlocal delivery service. In December 2019, Flipkart had invested in logistics platform Shadowfax. Kalyan Krishnamurthy, chief executive officer, Flipkart had then said that the partnership with Shadowfax will help build a strong foundation for hyperlocal deliveries, by including kirana stores. In the same month, Flipkart and Walmart had invested an undisclosed amount in the fresh produce delivery startup Ninjacart. In May 2019, the e-commerce company had launched Flipkart Supermart to foray into grocery delivery. SEE ALSO: <a href="https://www.businessinsider.in/business/ecommerce/news/reliance-is-building-up-its-retail-empire-ahead-of-future-deal-reliance-brands-adds-zivame-in-its-cart/articleshow/77215871.cms">Reliance is building up it’s retail empire – ahead of Future deal, Reliance Brands adds Zivame in its cart</a> <a href="https://www.businessinsider.in/business/auto/news/maruti-suzuki-india-first-quarter-preview-sales-and-share-price-chart/articleshow/77216142.cms">Maruti is getting bigger in a shrinking market</a>

Flipkart offers 90-minute delivery as competition from JioMart, Dunzo, BigBasket heats up

A few weeks ago Ronnie Screwvala ⁠— the media baron who founded the edtech unicorn Upgrad ⁠— was astounded by the amount of money flowing into to fill up empty fridges of <keyword id="12794222" type="General" weightage="20" keywordseo="bachelors/maidens" source="Orion">bachelors/maidens</keyword> who can’t plan their purchases. Now, blaming bachelors/maidens may be an unnecessary cliche, but they don’t care and you get the point. There are 20 million households in 2020, which bought items online and wanted them delivered by the time one could find the missing sock in a pair. <div type="image" title="Quick commerce" msid="88438835" hostid="261"></div> This is called <keyword id="12724312" type="General" weightage="20" keywordseo="quick-commerce" source="Orion">quick commerce</keyword>, the latest buzzword in Indian e-tail used to describe super fast deliveries within 15-20 minutes of the order being placed. Earlier in 2020, <keyword id="2591679" type="General" weightage="20" keywordseo="ronny-chieng" source="Orion">Ronny Chieng</keyword>, the Malaysian comic and a regular at The Daily Show, came up with this hilarious act describing the growing impatience of Americans. “Send it to me before I want it,” he declared before the audience roared in laughter. <div type="image" title="Ronny Chieng on Netflix Is A Joke" msid="88438940" hostid="261"></div> Now, less than 24 months since, more than a billion dollars have been invested in Indian startups chasing quick commerce, this year alone. While you were laughing at Ronny Chieng’s joke. A company like <keyword id="2466939" type="General" weightage="20" keywordseo="grofers" source="Orion">Grofers</keyword>, which <a href="https://www.businessinsider.in/business/startups/news/after-giving-up-on-90-minute-delivery-five-years-ago-due-to-lack-of-profitability-grofers-is-now-chasing-10-minute-delivery/articleshow/88253221.cms">couldn’t make a success story</a> out of delivering groceries in 90 minutes five years ago, has now made an <a href="https://www.businessinsider.in/business/startups/news/grofers-founder-explains-why-he-rushed-to-rebrand-the-startup-and-his-plans-seem-ambitious/articleshow/88320706.cms">ambitious</a> bet on delivering the same within 10 minutes. <div type="image" title="Investment in quick commerce" msid="88438986" hostid="261"></div> So much so that <a href="https://www.businessinsider.in/business/startups/news/zepto-raised-100-million-at-570-va[%E2%80%A6]to-deliver-product-in-10-minutes/articleshow/88394937.cms">two teenage Stanford dropouts</a> started a quick commerce seven months ago and it’s already worth half a billion dollars. These are only the numbers we know so far. If one considers the 20 million homes that are already customers for such quick deliveries, the total investment would amount to $60 (₹4,500) per home. Hope floats that more people in India get lazier and order things just when they want it and pay more for the stuff in delivery cost. Time for a chart! <div type="image" title="RedSeer estimate on growth of quick commerce" msid="88439084" hostid="261"></div> <div type="image" title="Quick Commerce" msid="88439520" hostid="261"></div>

SIMPLY PUT: This billion dollar business model was a Netflix joke in 2020

<ul><li>In an interview with Business Insider, Anant Goel, CEO and co-founder, <keyword id="4085901" type="PERSON" weightage="20" keywordseo="Milkbasket">Milkbasket</keyword> talks about why he doesn’t want to offer discounts to his customers. </li><li>The company is averaging 75,000 orders a day with over 2,250,000 in a month. </li><li>It aims to hit $100 million run rate by the end of the current financial year.</li></ul><keyword id="2709620" type="PERSON" weightage="20" keywordseo="grocery-delivery">Grocery delivery</keyword> startup Milkbasket has its head in the game. It is forecasting to hit $100 million in revenue by the end of the current financial year. Today, the Indian grocery space is crowded with multiple players and newly turned unicorns like <keyword id="964794" type="COMPANY" weightage="20" keywordseo="BigBasket">BigBasket</keyword>, soonicorns like Grofers. Even food delivery unicorns like Swiggy too are entering the sector. Milkbasket insists on growing without discounts However, while all of these new and old startups are trying to offer discounts and faster delivery options to lure consumers, Milkbasket is adamant. It doesn’t believe in discounts and has only a single slot delivery at 7 am in the morning. “That’s how you build a business, not by burning money. For any B2C business, you can always spoil the customer, but can you make money while doing it? Is it sustainable? We have always tried to strike the balance,” Anant Goel, CEO and co-founder, Milkbasket told Business Insider. So, the four-year-old startup has built a loyal consumer base, without having to give in to the new age trends. It serves 1.5 lakh households across 5 cities (Delhi, Noida, Gurgaon, Ghaziabad and Bengaluru). The company is averaging 75,000 orders in a day with over 2,250,000 in a month. “We now aim to hit $100 million run rate by the end of the current financial year, we are currently at $60 million,” said Goel. Investors aid Milkbasket’s growth story It has also been a good year for Milkbasket. There was a possible funding from Sachin Bansal’s BACQ Acquisitions. However Milkbasket and Bansal’s firm had issued a joint statement they weren’t going ahead with it. Later, it closed its series B round with $12.7 million. The series B investment includes $10.5 million led by Unilever Ventures and participation from Mayfield India, Kalaari Capital, and Blume Ventures and few Indian family offices and Innoven Capital. And Goel credits it all to doing things differently. “Lots of competition has come in, which was not there earlier or were smaller till last year. Competition in new shapes and forms with big money, chasing us and our customers,” Goel said with a laugh and added, “But we are sure about our model – a sustainable supply chain that can deliver groceries to you.” Busting the myth Goel also busts a myth for us. Contrary to popular belief, Milkbasket has always been into groceries and not just milk. But its name makes people think otherwise. However, the name too has a direct connect to their business model. “When we started grocery in 2015, there were about 200 startups in the space. We asked customers what they want from online grocery startups and they all said discounts. But we are not here to give away discounts. Milkbasket the name came about because milk is a commodity for which you don’t ask discounts, instead you pay more to get it delivered to your house and you are happy to do so,” he said.

Milkbasket refuses to bow down to discounts – aims to hit $100 million by March

<ul><li><keyword id="2709620" type="PERSON" weightage="20" keywordseo="grocery-delivery">Grocery delivery</keyword> startup <keyword id="4085901" type="PERSON" weightage="20" keywordseo="Milkbasket">Milkbasket</keyword> has acquired the Noida-based <keyword id="7465623" type="UNKNOWN" weightage="20" keywordseo="Veggie-India">Veggie India</keyword> for an undisclosed amount. </li><li>The founders of Veggie India along with the team would be joining Milkbasket. </li><li>Milkbasket had last raised a funding of $7 million in December, 2018.</li></ul>Groceries delivery startup Milkbasket has gone on to acquire one-year-old startup Veggie India for an undisclosed amount. With the acquisition, the founders of the Noida-based Veggie India Jainendra Upadhyay and Shailendra Upadhyay as well as all of their employees will be joining Milkbasket. This is also Milkbasket's first acquisition since their launch in 2015. Veggie India, which was launched in 2018, operates in Noida and Ghaziabad mainly for delivery of vegetables and fruits, according to its website. “The acquisition is in line with our growth plans for 2019 and adds further strength and distribution capabilities to the existing business,” Anant Goel, Co-founder and CEO of Milkbasket. Goel added that Milkbasket has an “aggressive growth plan.” In India, grocery delivery startups have been gunning for dominance in their fields. So, Milkbasket’s acquisition of Veggie Daily comes at a time when every other player like Big Basket or Grofers is upping their game as foodtech unicorn Swiggy enters the grocery delivery segment. In an official statement, the company said, “Having achieved positive unit economics within the first six months of the launch, Milkbasket is the most capital efficient model in the online grocery space as compared to its domestic and global peers.” With this acquisition, Milkbasket now has a customer base of over 100,000 households. Milkbasket, as its name gives it away, first gained popularity after its launch in 2015 for delivering fresh milk to Indian households and soon expanded their services to groceries too. Milkbasket has raised about $16 million from Mayfield Advisors, Beenext, Kalaari Capital, Unilever Ventures, Lenovo and Blume Ventures. Its last investment round was in December 2018, where it raised $7 million from US-based Mayfield Advisors at a <a href="https://www.vccircle.com/mayfield-leads-milkbasket-s-extended-series-a-round/">reported </a>valuation of about $30 million. See Also: <a href="https://www.businessinsider.in/swiggy-and-bigbasket-will-battle-softbank-and-mukesh-ambani-in-online-grocery/articleshow/68204293.cms">Online grocers are back in business in India with billions more to burn – and that may be good for consumers</a> <a href="https://www.businessinsider.in/delhivery-raises-395-million-from-softbank-enters-the-unicorn-club-of-india/articleshow/68287009.cms">Delhivery becomes India’s first unicorn in 2019, thanks to SoftBank</a>

Four years into the business, Milkbasket has acquired one-year-old startup Veggie India

<ul><li>While Zomato’s sales have been increasing, the food delivery giant is still unable to make profits on account of huge expenses led by discounts and marketing.</li><li>It posted a net loss of ₹1,222 crore for the March quarter, which is an increase of nearly 50% since last year.</li><li>However, analysts believe the food delivery business has a huge potential as it is estimated to be a $110 billion opportunity by 2025.</li><li>Both Zomato and its rival Swiggy together hold 90-95% market share in India’s food delivery business.</li></ul>Food delivery company Zomato has been reeling under the pressure to turn profitable since July last year, <a href="http://a-strong-public-market-debut-at-51-premium-shares-open-at-115/articleshow/84667265.cms">the day it went public </a>and raised over ₹9,000 crore from the public. Since its listing, Zomato investors have seen their wealth decline by half, and there seems to be no letting up yet. Brokerages believe there might be a chance for the company to woo investors in a few years as there lies a huge opportunity in front of them. According to a report by JM Financial, Zomato’s path to operational profitability (also known as EBITDA profitability) requires two things. EBITDA is short for earnings before interest, taxes, depreciation and amortisation. “We believe order volumes and contribution margin per order are two key variables that would determine Zomato’s path to profitability. Our analysis suggests the company can turn profitable in FY25 on a cash EBITDA basis if it were to reach annual order volumes of 1 billion (2.5x FY20 levels) and a contribution margin of around ₹21 per order,” said the report. Adding to it, the report says it sees a ramp-up beyond the food ecosystem can also provide incremental growth. It expects Zomato to follow global peers in terms of expanding beyond food delivery and explore adjacencies in the form of grocery delivery, alcohol delivery, medicine delivery, on-demand delivery and insta shopping. Its recent investment in Grofers and a majority stake in Fitso is a validation of expansion into adjacent areas, states the report. Gen Z population offers attractive growth opportunities to Zomato The number of online shoppers in India is <a href="https://www.businessinsider.in/business/ecommerce/news/india-will-have-more-ecommerce-users-by-2025-than-us-population/articleshow/92062424.cms">expected to grow </a>to 300- 350 million by FY25 from 100-110 million in FY20 according to Bain &amp; Company. “With around 10 million monthly active users, the current penetration rate for Zomato within the online product shopper base works out to around 10%. We expect this penetration to increase to around 15% over the next 5 years, effectively growing the monthly active user base of Zomato to 45 million by FY26,” said the report. The brokerage expects the growth to be driven by the growing share of millennials/Gen Z in the ‘earning’ population and fast-growing e-commerce penetration beyond Tier-1 cities. Customer addition remains strong, but 9 out of 10 orders are from old users New customer additions by Zomato remained strong in Jan-Mar with around 5.5 million new additions. However, more than 90% of its food delivery business is being driven by repeat users compared to new users. “The company expects growth in the near term to be driven by repeat customers as there is substantial room for improvement in average annual ordering frequency (which is around 10 per user per year),” said the report by JM Financial. Zomato now operates in more than 1,000 cities across India as it added 300 plus new cities in Jan-Mar. Top 8 cities contributed around 60% to gross order value. However, its losses continue to swell, ballooning by nearly 50% in the March quarter to ₹1,222 crore, when compared to the previous year. Some analysts believe the change in the company’s performance needs to happen soon to turn around the loser story. “With the current inflation, the margins will lower further due to increased cost of fuel, raw materials etc. Acquiring different companies won’t help much in expansion, rather it will make management more difficult,” said Majoj Dalmia, founder and director at Proficient Equities. “Existing management needs to be optimised for profitability; the growth prospects will depend on current performance and not future, if there is a turnaround now, then we can expect some good growth story,” he added. <div type="javascript" title="Custom" contenttype="Image"><cdata><![CDATA[]]></cdata></div> SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="http://www.businessinsider.in/business/startups/news/pepper-content-raises-14-million-to-enter-the-us-market/articleshow/92084581.cms">INTERVIEW: Pepper Content skip the traditional Middle East route, heads directly for the US market</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="http://www.businessinsider.in/stock-market/news/wipro-yes-bank-tata-power-among-stocks-to-watch-out-for-on-june-9/slidelist/92094551.cms">Wipro, Yes Bank, Tata Power among stocks to watch out for on June 9</a>

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