Zomato, a major food delivery service, is also trying out new products. It recently introduced delicacies that come from other cities or what it calls “intercity myths”.
“Once a company reaches a certain level, it becomes much more costly to acquire new customers.” “It makes more sense to establish new service lines for the same customers, or reactivate dormant customer,” says an analyst under condition of anonymity.
Zomato, like Nykaa is betting on new business ventures. Zomato spent Rs4,447 million to acquire Blinkit, a quick commerce player. The deal was not popular with the market because of its cash-sucking nature. Zomato believes that quick commerce will help it increase customer base and increase the average order value, as well as its monthly order frequency. Blinkit has a wide variety of essential spends so Zomato is betting on this. Zomato reports that adjusted EBITDA losses from the quick commerce company fell to Rs259 Crore in Q2 FY23 compared to Rs326 Crore in the previous quarter. The core food delivery business also reached adjusted EBITDA breakeven. “Of 50 million customers, only 1.8 million order once a week. Goyal, in FY22 earnings call, stated that such a number would lead to significant growth in our business.
Paymenttm and Policybazaar – Digital Wave
Yashish, who is chairman and CEO at PB Fintech which also owns Policybazaar, Paisabazaar and other sites, said that he runs a boring’ business. “We educate consumers on the importance of life and health insurance. We also try to make it easy for them to buy policies and file claims. “We don’t have any plans to do anything else,” he said. Inflation has not affected the business. There isn’t much competition in online insurance. Policybazaar claims more than 90%. He said that insurance is a cyclical business. If you look at 2020 our revenue was Rs500 to 600 crore. It is now at Rs 2,400 crore. That’s a growth of four and a quarter times in three years. Policybazaar was profitable for between four and five quarters. Paisabazaar ought to break even next quarter,” states Dahiya.
Paytm, however, is focused on payments. “We leverage payments for credit disbursement. Sharma spoke during the FY22 earnings conference. Sharma stated that credit is still young and has begun to show its potential as a long-term sustainable market. Paytm claims it continues to experience “heightened consumer engagement” with its payment offerings through its super app. The average monthly transacting user (MTU) for the quarter ended September 2022 reached 79.7 millions, an increase of 39% over the previous year. Paytm saw its net consolidated loss increase 21% in Q2 FY23.