Food delivery major Zomato pulled out of around 225 smaller cities in India last month due to poor performance over the past few quarters.

Zomato CFO Akshant Goyal stated in the company’s letter to shareholders, “Recently, in January, we exited around 225 smaller cities that contributed 0.3% of our GOV (gross order value) in Q3FY23 (October-December).” According to its FY22 annual report, Zomato was present in over 1,000 cities. As a result, the listed food delivery giant has reduced its geographical presence in the country by approximately 23%. “Performance of these (225) cities was not very encouraging in the past few quarters,” Goyal continued, “and we did not feel the payback period on our investments in these cities was acceptable.”

Food delivery major Zomato pulled out of around 225 smaller cities in India last month due to poor performance over the past few quarters.

Zomato CFO Akshant Goyal stated in the company’s letter to shareholders, “Recently, in January, we exited around 225 smaller cities that contributed 0.3% of our GOV (gross order value) in Q3FY23 (October-December).” According to its FY22 annual report, Zomato was present in over 1,000 cities. As a result, the listed food delivery giant has reduced its geographical presence in the country by approximately 23%. “Performance of these (225) cities was not very encouraging in the past few quarters,” Goyal continued, “and we did not feel the payback period on our investments in these cities was acceptable.”