Consumer tech startup Eternal (formerly known as Zomato) remains confident about the long-term growth of its food delivery business, even as the economy shows signs of slowing down. In its Annual Report, Eternal said it expects to continue growing its Net Order Value (NOV) by more than 20% per year. NOV refers to the total value of items sold on the platform, excluding discounts.
Eternal says the food delivery segment is supported by strong fundamentals. These include low penetration of restaurant food in India, rising urbanisation, and increasing per capita income. These factors, according to the company, will help maintain a steady rise in food delivery orders in the coming years.
In FY25, Eternal made a major move in its quick commerce business by pushing for faster deliveries of household items. The company doubled its employee count to 16,868 as it expanded teams in this segment.
It also added staff through the acquisition of Paytm’s event ticketing business. As a result, its employee benefit expenses rose by 54% to ₹2,558 crore, mainly due to higher salaries and wages.
With a focus on customer growth, Eternal increased its advertising and promotion expenses by 38% in FY25. Most of the spending went into digital marketing for its quick commerce business and promoting its ‘District’ app.
At the same time, the company saw a rise in refund costs, mostly due to higher order volumes in both food delivery and quick commerce.
Even though total staff increased, the median salary paid to employees fell by 27.26% on a standalone basis and 31.75% on a consolidated basis. This shows that Eternal hired more lower-salaried employees, especially for customer support and dark store operations.
Read more: Why Did Zomato Rebrand Itself as Eternal?
Eternal continues to invest in growth areas like food delivery and quick commerce, despite a weak economy. With strong demand and urban expansion, the company believes it will maintain its upward trend. For investors keeping an eye on the tech and startup space, Eternal’s performance offers some optimism about the future of online services in India.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in securities are subject to market risks. Read all related documents carefully before investing.
Published on: Jul 31, 2025, 1:02 PM IST
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
