Zomato Q1 net loss rises due to ESOP

Food delivery platform Zomato Ltd on Tuesday reported a sharp increase in quarterly loss in its first earnings release after last month’s blockbuster initial public offering.

Loss widened to ₹360.7 crore in the quarter ended June 30 from ₹134.2 crore in the preceding three months because of an expanded Employee Stock Ownership Plan (ESOP) pool. The company compared earnings sequentially as its financials for the first quarter of FY21 were severely impacted because of the Covid-19 outbreak and subsequent national lockdown.

Revenue from operations and delivery charges rose 26% to ₹1,160 crore for the fiscal first quarter from ₹920 crore in the year earlier.