Zomato's 'Diwali gift': Rs 10 platform fee

Zomato has raised its platform fee to ₹10, up from ₹7, as the festive season approaches. According to a notification on the app, “This fee helps us pay our bills to keep Zomato running. To maintain services during festive season, it has increased slightly.”

Initially set at ₹2 in August 2023, the platform fee has seen gradual increases, including a temporary rise to ₹9 on December 31. The recent ₹1 increase could generate an additional ₹65 crore annually, based on Zomato's FY2023 order volume of 64.7 crore.

On October 22, Zomato reported a slight increase in Q2 profits, influenced by investments in expanding its "dark stores" for the Blinkit quick commerce service. The company added 152 dark stores, bringing the total to 791, though margins from Blinkit fell slightly to 3.8%.

Zomato's consolidated revenue for Q2 grew nearly 69% year-over-year, reaching around ₹4,800 crore. The company plans to raise ₹8,500 crore through a qualified institutional placement to strengthen its finances after acquiring a ticketing business.

Amid rising competition in the food delivery sector, rival Swiggy recently offered shares worth $448 million in its IPO, while Zepto raised $340 million in August, gearing up for a 2025 listing.

(By arrangement with livemint.com)