Low Bandwidth Of Listed Internet Startups Continue In Q4 Nykaa, Delhivery, Paytm, Zomato have reported a decline in net profit and widening of net loss, in their quarter results
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The party season for listed Internet startups looks dull which reflected in the poor performance in their recent quarterly results. Nykaa, Delhivery, Paytm and Zomato have recorded a decline in their net profit in the quarter ended 31 March, 2022.
FSN E-Commerce Ventures, the parent company of beauty e-commerce major Nykaa, reported a 49 per cent decline in consolidated net profit at INR 8.56 crore in the fourth quarter. The company's net profit stood at INR 16.8 crore in the year-ago period.
Falguni Nayar, MD and CEO of Nykaa, attributed the slowdown to challenges around the macroeconomic environment. She said, "The year has witnessed a challenging macroeconomic environment, pronounced for discretionary categories like beauty, personal care and fashion. Despite market slowdown, our growth story continues,showing the resilience of our business model and long term sustainability by balancing strong revenue growth, responsible unit economics and profitability. We acquired over 6 million new customers across beauty, fashion and witnessed superior customer retention, with improved metrics across the funnel - from visits to conversions."
The company is now eyeing on store expansion with 32 new physical stores across the country this year, including tier II, tier III cities. Its total operational physical store count was 105 as of 31 March, 2022 in 49 cities.
For the second consecutive quarter, Zomato reported widening of consolidated loss. The food delivery platform said its consolidated net loss for the quarter ended March 2022 widened to INR 359.7 crore compared with INR 134.2 crore in the year-ago period.
"Reduction in losses will be driven by improvement in the contribution margin of the food delivery business and also operating leverage playing out as our revenue is growing faster than our fixed costs," it said in a statement. The platform launched in 300-plus new cities in Q4 FY22, taking its presence to 1,000-plus towns and cities across India.
Fintech major Paytm's parent company, One 97 Communications, reported a widening of net loss, in the quarter ended March 2022. The net loss stood at INR 761.4 crore for the period under review compared with INR 441.8 crore in the same quarter last year.
According to a report,so far in calendar year 2022, the market value of Paytm shares have eroded by 61 per cent on the back of heavy foreign institutional investors selling. "As announced in April 2022, we believe we will achieve operating breakeven by September 2023. This will be driven by continued revenue growth, along with moderation in costs as operating leverage kicks in," the company said in a statement.
Logistics company Delhivery, reported a consolidated loss of INR119.8 crore for the quarter ended March 2022, compared to INR 118 crore in the year-ago period. The logistic platform which got listed earlier this month saw its revenue grow 106 per cent to INR 2,072 crore in the quarter under review.
"Delhivery continues to be well-capitalized, with cash and investments of INR 2,512 crore as of March 31, 2022, further augmented by INR 3,846 crore of net IPO proceeds raised in May 2022," the company said in its results.