Tech3 | Zomato delivers profit for 4 quarters in a row, Meesho's links with Walmart and more

One quick thing:  SoftBank Vision Funds slip back into the red

In today’s newsletter: 

• Zomato delivers profit for 4 quarters in a row
• Meesho's Walmart connections
• GoPool wants to eat Uber-Ola's lunch

Event alert: Moneycontrol and CNBC TV18 are hosting the ultimate event on artificial intelligence, bringing together entrepreneurs, ecosystem enablers, policymakers, industry leaders, and innovators on May 17 in Gurugram. Click here to register and gain access to the AI Alliance Delhi-NCR Chapter.

Zomato delivers profit for 4 quarters in a row

You could say FY24 was the annus mirabilis for Zomato. 

During this period, it became profitable for the first time, turned around its quick commerce business, and steadied its leadership amid a flurry of exits.

“While we are happy to be where we are today but also equally scared. It feels like we have lost the right to screw up, or make mistakes,” Zomato chief Deepinder Goyal said in a letter to shareholders.

Driving the news: After years of being in the red, Zomato has hit profitability for four straight quarters.

• In the March quarter, it reported a profit of Rs 175 crore, while revenue surged 73% to Rs 3,562 crore
• The company registered a net profit of Rs 351 crore in FY24

Blinkit also delivers: Meanwhile, the company claimed that its quick commerce arm — Blinkit — has become operationally profitable for the first time. 

• The grocery delivery firm’s sales growth has also outpaced the parent’s food delivery business, albeit on a smaller base
• It also claims to be the largest quick commerce player in Delhi, Bengaluru and Mumbai

We recently did a deep dive into the machinations of Blinkit’s turnaround. Check it out

Bonanza for Zomans

Zomato has sought shareholder approval for a fresh employee stock option (ESOP) pool of over 18 crore shares, which is worth more than Rs 3,500 crore at the current market value.

• The company said this will help it reward employees and leadership over the next 5 years for their performance
• The ESOP pool would also mean a significant dilution of current Zomato shareholders’ stakes 

A step back

Meanwhile, Zomato’s fintech arm is giving up two licences it obtained from the Reserve Bank of India.

Go deeper

This is a short version of the MCTech3 newsletter. Sign up here to get the full edition in your inbox every evening on weekdays.