Zomato to invest 1 billion US Dollars in startups

Zomato CEO Deepinder Goyal has announced the company's investments in startups such as Curefit, Shiprocket and Magicpin, and said the company will invest another $1 billion into more companies over the next couple of years.

Zomato said it is in the process of selling Fitso to Curefit (Curefit Healthcare Pvt Ltd) for $50 million, and is also investing cash in Curefit. Net $50 million cash investment plus value of the Fitso business (worth $50 million) will give Zomato a cumulative shareholding worth $100 million in Curefit (6.4 percent shareholding in Curefit).

The company said it has also signed definitive documents for investing ~$75 million in logistics player Shiprocket for a ~8 percent stake as part of a larger ~$185 million round.

The company saw revenue grow by 22 percent sequentially to $189 million in the September quarter, while EBITDA losses also grew to $41 million, a near 2x increase sequentially and a 4x jump year on year.

When it comes to profitability, Contribution as a  percent of gross order value was 1.2 percent in Q2 FY22 as compared to 2.8 percent in Q1 FY22.