Zomato’s all-in-one ticket booking platform, District, has surpassed 6.5 million downloads since its launch in November 2024.
Rahul Ganjoo, the head of the initiative, shared this milestone in a letter to shareholders, highlighting District’s growing footprint in the market.
Launched to revolutionize “going-out” experiences, the District app enables customers to discover and reserve restaurant tables while booking tickets for movies, sports, live performances, and other events.
It aims to consolidate multiple services into a unified platform, simplifying the customer experience.
“Our immediate priority is to ensure a smooth transition of customers to District from all other platforms where our going-out business is currently live (i.e. Zomato, Paytm, Insider, and Ticketnew), paving the way for creating a single (one-of-a-kind) destination for all going-out experiences in India”Rahul Ganjoo said in the letter.
Profitability Impact and Future Outlook
While Zomato’s core business remains profitable, the company reported a quarterly loss in Q3 FY25, primarily due to investments in District.
The losses stemmed from significant expenditures on team expansion, marketing, and technological advancements to bolster the app’s capabilities.
The losses are expected to continue for the next year.
However, Rahul Ganjoo emphasized that they are not substantial in the larger context of Zomato’s financial performance. “We are likely to operate in losses for the next year or so, but we don’t expect them to be meaningful in the overall context of Zomato,” he stated.
Strategic Investments and Competitive Landscape
In August 2024, Zomato acquired Paytm’s ticketing arm, Paytm Insider, for INR 2,048 crore to strengthen its position in the ticketing domain.
This acquisition is a cornerstone of Zomato’s strategy to migrate users to the District app, which competes directly with established players like BookMyShow and Swiggy’s new entrant, Scenes.
Zomato has also invested a portion of the INR 8,500 crore ($1 billion) raised through qualified institutional placement (QIP) last year to scale up District.
The funds are being allocated to grow the app’s offerings and encourage customer adoption.
Zomato’s Financial Performance
Zomato’s consolidated net profit dropped 57.2% year-over-year to INR 59 crore in Q3 FY25, down from INR 138 crore a year ago.
On a sequential basis, the profit fell 66% from INR 176 crore in the previous quarter.
The decline is attributed to a slowdown in the food delivery segment and rising competition in quick commerce.
Future Focus
Looking ahead, Zomato plans to channel most of its resources toward ensuring a seamless user transition to District and expanding its service offerings.
“Our focus is on growing selection on the platform and creating a differentiated user experience that will redefine how people engage with going-out activities in India,” Rahul Ganjoo added.
