Zomato Rents Massive Mumbai Office Space for Rs 1.34 Crore Monthly 🏢💰
Eternal, the parent company of Zomato, leases a monthly office space in Mumbai for the considerable sum of 1.34 crores.
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Hungry for more space? Zomato, under its umbrella company Eternal, has set up shop in Mumbai's Andheri East. The company has inked a five-year lease deal for an impressive 84,000 sq ft office space in the R Square building developed by Runwal Realty.
The starting rent? A hefty Rs 1.34 crore per month. But hey, size doesn't always come cheap, right? There's also a rent escalation clause after 36 months of the lease—so keep those wallets topped up! 💸📈
Breaking down the numbers, the per square foot rental price is a less eye-popping Rs 160. Plus, there's Rs 18 per square foot for common area maintenance charges. The grand total for the five-year lease? A cool Rs 95 crore! And fear not, Eternal will snag a parking space for a sleek 57 cars! 🚗🔓
But why, you ask, would Zomato leaf through so many pages of the rental agreement? Their current headquarters are in Gurugram, Haryana. Besides the food delivery game under the Zomato brand, Eternal also runs the grocery business under Blinkit and District for ticketing and events, as well as Hyperpure for B2B supply chain services. 🛍️🏢
So, with their growing workforce and a diversifying business portfolio, Eternal's decided to move into this swanky, new space in Mumbai's commercial hotspot, Andheri. 🌃🏢
Now let's take a peek at Eternal's Q4 FY25 performance: their net profit dropped by 77 percent year-on-year to Rs 39 crore! But don't fret, the company's revenue from operations rose to a whopping Rs 5833 crore in Q4. The decline in profits was blamed on the swelling expenses. But not ones to back down, the team at Eternal has been working hard to restore their financial health, with measures like the recent introduction of the rain surcharge for premium users. 🌧️💰
Streamlining operations and boosting profits—you're on a roll, Zomato! 🚀💥
Insights:
- Expansion Strategy: The rental of this large office space indicates Zomato's broader expansion strategy, aiming to support its various services, including quick commerce, food and beverage delivery, and ticketing services.
- Outlook for Profitability: Despite the increased costs from leasing the office space, Zomato has been focusing on improving profitability, with measures like the rain surcharge for premium users.
- Industry Competition: The strategic location of the office space in a competitive market like Andheri would facilitate easier access to talent and resources, potentially enhancing the company's operational efficiency and capacity.
In light of Zomato's growing workforce and diversifying business portfolio, it is exploring financial avenues in the market, with the aim of further expanding its services in the Defi landscape, such as quick commerce, food and beverage delivery, ticketing services, and B2B supply chain management. The large office space rental in a commercial hotspot like Andheri is a testament to these financial commitments and efforts to enhance operational efficiency, amidst the ongoing competition in the industry.
