Zomato's Going-Out Business To Be Housed Under New 'District' App

Zomato's going-out business, which includes dining out and other ticketed events, will be housed under a new app called District, the company said on Thursday.

Deepinder Goyal, in a letter to the shareholders alongside the company's first quarter earnings for fiscal 2025, said the going-out business could be the group's third largest consumer-facing business.

"Today, Zomato and Blinkit are our two large consumer businesses, and both of them serve customers' needs at home. However, we also have one of India's largest ‘going-out' businesses," Goyal said.

The going-out business is currently a combination of its dining-out and Zomato Live business verticals. The dining-out tab in the Zomato app allows users to reserve tables, avail of offers, and make payments while eating out at restaurants. In the Zomato Live offering, customers can search for and book tickets for various kinds of entertainment events, including the company's flagship Zomaland event.

"This dining-out business is now operating at a run-rate of over $500 million in annualised gross order value and is already profitable. We believe that there is an opportunity to further expand our going-out offering, building on top of our dining-out business. Additional use cases for customers in the going-out space include movies, sports ticketing, live performances, shopping, staycations, etc., some of which we have already launched or are building as we speak," Goyal said in the letter.

As a result, the company is building a one-stop app for going out named 'District'. "If we execute this well, we see going-out becoming the 3rd large B2C business emerging out of Zomato," Goyal said.

The going-out segment became a reportable segment in Zomato's earnings starting in July 2023. For the first quarter, the segment reported a revenue of Rs 95 crore and a profit of Rs 11 crore.