In response to recent media reports suggesting a potential $2 billion acquisition of Indian e-commerce shipping startup Shiprocket, Zomato has categorically denied the rumours. The food delivery platform took the unusual step of addressing the speculation in a filing with the Bombay Stock Exchange (BSE), citing the need to clarify given the substantial impact such news could have on the market.
Setting the Record Straight
Zomato, typically avoiding commentary on media speculations, emphasised that there are no plans for an acquisition at the moment. The company urged caution among investors against relying on inaccurate information, highlighting its unwavering focus on existing business operations.
Zomato’s Financial Performance Shines
Despite the recent rumours, Zomato’s financial outlook remains positive. The publicly traded company has experienced significant growth, surpassing its IPO price and delivering substantial returns for investors. The stock’s remarkable 108% return for the year 2023 showcases Zomato’s resilience in the market.
Stock Performance and Recovery
Zomato’s stock has demonstrated remarkable recovery, posting gains each month since April. With a notable 27.25% gain in April and consistent positive returns, the stock closed yesterday at ₹128.20, marking a 2.77% increase. This robust performance follows a challenging period, indicating Zomato’s ability to adapt and thrive in the competitive market.
Profitability and Growth Trajectory
Zomato reported a net profit of ₹36 crore in the September quarter, a significant turnaround from the ₹251 crore loss in the same period last year. This marks the second consecutive quarter of profitability for the company, building on the ₹2 crore profit reported in the June quarter. The impressive 71% growth in revenue from operations, driven by increased order volumes across food ordering and quick commerce, reflects Zomato’s expanding market presence.
Zomato’s Strategic Focus
In light of recent rumors, Zomato’s proactive response underscores its commitment to transparency and its determination to dispel misleading information. The company’s robust financial performance and strategic focus on existing operations position it as a key player in the competitive food delivery and quick commerce sectors, showcasing its resilience and adaptability in a dynamic market landscape.
