What hurt Zomato’s profits in Q3; ZEVO’s EV logistics ambitions

Hello,

This is going to be the year for the future of money. 

Or at least, that is what investors have been betting on, including Paytm’s backers, as the payments app plots its comeback within two quarters. 

While it did report a narrower third quarter net loss at Rs 208.5 crore, the fintech still has a ways to go to recover from the impact of its payments bank unit winding down. 2024’s regulatory actions still weigh substantially on the stock, which is still down 58% from its trading debut in 2021.

However, it isn’t the only fintech company planning growth strategies this year. Billionbrains Garage Ventures, the parent company behind Groww, is working towards a potential market debut this year, and could seek a valuation of $7 billion to $8 billion. 

Clearly, the IPO momentum isn’t stopping anytime soon. Indian startups have raised over $13 billion in 2024, while 13 startups went public. Will 2025 be the year to set a new record?

Meanwhile, memecoins abound in the crypto market, with President-elect Donald Trump and his wife Melania releasing the ‘Trump’ and ‘Melania’ tokens, the former of which crossed $10 billion in market value in just a couple days since its launch. 

The memecoin buzz helped a wider rally in the cryptocurrency market as well, with Bitcoin setting a new record high in early trading. Even amid the jubilation, though, crypto experts have raised concerns about the move: what happens to the asset class and its backers when the hype is gone?

After all, social media virality is such a fickle thing. 

In today’s newsletter, we will talk about 

• Demand slowdown hurts Zomato’s profits
• ZEVO’s EV logistics ambitions 
• Nazara raises Rs 495 Cr 

Here’s your trivia for today: Until World War II, solid blocks of what was commonly used as currency in Siberia?

Foodtech

Zomato’s profits halve in Q3

Food aggregator Zomato reported a profit of Rs 59 crore in the third quarter of fiscal year 2025, which is a little over half that it reported a year ago at Rs 138 crore. 

The Deepinder Goyal-led company, in its letter to shareholders, attributed the slowdown in the company's food delivery segment to a “broad-based demand slowdown."

Slump:

• Zomato's revenue from operations was up 64.35% to Rs 5,405 crore in the third quarter of the financial year 2024-25, against Rs 3,288 crore in the same quarter of the previous year, according to a BSE filing.
• Blinkit, which is Zomato’s quick commerce arm, saw its revenue grow 117.23% to Rs 1,399 crore, compared to Rs 644 crore last year.
• It posted a net loss of Rs 103 crore in the quarter. On a management call, Blonkit attributed the losses to its growth investment.

<Funding Alert>

Startup: Nazara Technologies

Amount: Rs 495 Cr

Round: Stake sale

Startup: KisanKonnect 

Amount: $4.5M

Round: Series A

Startup: Burma Burma

Amount: Rs 25.46 Cr

Round: Equity

Startup

ZEVO’s EV logistics ambitions 

Indian last-mile delivery is making a seamless switch to electric mobility, helped by government policies, cheaper electric vehicle (EV) fleets and increasingly robust charging infrastructure in major cities. 

Realising this opportunity, ZEVO began its operations in 2022, with four EVs purchased on their co-founders’ credit cards. The company provides fleet services to a range of companies, including online grocery platform BigBasket and delivery company Shadowfax, among others. 

New venture:

• ZEVO is now clocking in Rs 60 crore in annual recurring revenue and is targeting Rs 300 crore by the next financial year. 
• Additionally, the company is aiming to turn EBITDA positive in the next four to five months, after which the company will focus on attaining profitability as an organisation. 
• ZEVO’s fleet is a mixed bag of vehicles that can use battery swapping infrastructure and charging infrastructure. However, the company is quite bearish on battery swapping. 

Funding

Nazara raises Rs 495 Cr 

Nazara Technologies raised Rs 495 crore by selling a 5.4% stake to an entity led by existing investors Arpit Khandelwal and Mithun Sacheti, triggering an open offer. 

Axana Estates LLP will acquire the stake through a preferential issue of shares at Rs 990 per share, and the deal has been approved by Nazara’s board, the gaming and e-sports company said in a statement.

Key takeaways:

• Following the transactions, assuming full acceptance of the open offer, the total stakes of the acquirers and PACs, along with the existing promoters Vikash and Nitish Mittersain and the promoter group, is expected to be around 61.5%, Nazara said.
• The company plans to use the raised capital to accelerate organic growth, strategic acquisitions, and expansion into new markets.
• Plutus Wealth Management LLP and Axana Estates LLP, along with PACs, will launch a public open offer to acquire an additional 26% stake in Nazara, according to SEBI regulations, it added.

News & updates

• Agreement: Meta's Facebook, Elon Musk's X, Google's YouTube and other tech companies have agreed to do more to tackle online hate speech under an updated code of conduct that will now be integrated into EU tech rules, the European Commission said on Monday.
• Alternatives: Chinese refiners boosted purchases of crude oil from the North Sea and the Mediterranean, as Asian processors widened their search for replacement barrels following the recent US sanctions targeting Russian oil.
• Return:  TikTok began restoring its services on Sunday after President-elect Donald Trump said he would revive the app's access in the U.S. when he returns to power on Monday.

Until World War II, solid blocks of what was commonly used as currency in Siberia?

Answer: Tea.

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