Zomato Expands Its Reach with ‘District’ App for Going-Out and Entertainment

Zomato, Gurgaon-based food delivery platform led by CEO Deepinder Goyal, has launched a new app called “District” to consolidate its “going-out” business. The app will offer a range of services, including restaurant dining, movie and event ticketing, sports ticketing, live performances, shopping, and staycations. The development came last week.

The launch of District is part of Zomato’s broader strategy to expand beyond its core food delivery services. As outlined in a letter to shareholders by CEO Deepinder Goyal, the company aims to diversify its offerings and provide users with a more comprehensive experience. The new app marks a significant step in this direction, positioning Zomato as a one-stop-shop for users’ social and entertainment needs.

Deepinder Goyal highlighted the company’s ambition to expand its reach beyond food delivery and explore a wider range of lifestyle services. Deepinder Goyal pointed out that Zomato’s “going-out” business has already achieved a significant milestone, with an annualized Gross Order Value (GOV) of over $500 million, and is currently operating profitably.

“Today, Zomato and Blinkit are our two large consumer businesses, serving customers’ needs at home. However, we also have one of India’s largest ‘going-out’ businesses, helping our customers discover restaurants for dining out,” Goyal stated.

With the launch of District, Zomato is poised to challenge established market leaders like BookMyShow, which currently leads the online movie-ticket booking space in India.

“Building a one-stop destination app for going-out could be a game-changer for each of these use cases, and we intend to do exactly that with our new District app. If we execute this well, we see going-out becoming the third large B2C business emerging out of Zomato,” Goyal furthermore added.

Zomato’s Q1FY25 financial report reveals a remarkable surge in net profit, reaching an impressive INR 253 crore. This represents a significant leap from the company’s first-ever net profit of INR 2 crore in the same quarter last year, marking a substantial improvement in its financial performance.

The company’s revenue has also seen a substantial increase, rising by 74% year-on-year to INR 4,206 crore, up from INR 2,416 crore in the same quarter last year. This notable growth is a testament to Zomato’s expanding presence in the market.

The Gross Order Value (GOV) has also experienced a significant boost, increasing by 53% to INR 15,455 crore, driven primarily by the company’s consumer-facing businesses such as food delivery, quick-commerce, and going-out. This upward trend indicates a strong momentum in Zomato’s operations and a promising outlook for the future.