Eternal’s AdEx nears Rs 2,000 cr in FY25; Zomato, Blinkit revenue boosted by ad income

Eternal Limited, formerly known as Zomato Ltd, spent nearly Rs 2,000 crore on advertising and promotions in fiscal year 2025--up 38% Year-on-Year, revealed company's latest annual report.

Advertisement and sales promotion expenses surged to Rs 1,972 crore in FY25, up from Rs 1,432 crore in FY24.

According to the company, the ad expenses included platform funded subsidies, marketing and branding cost, customer appeasement initiatives, and refunds across its business operations.

To acquire new customers, Eternal significantly increased Blinkit's marketing spend in FY25.

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"There was an increase in marketing investments to meaningfully accelerate the pace of new customer acquisition in line with the expansion in store footprint," Eternal noted.

During FY25, Blinkit rapidly expanded its geographical presence across the country, adding 775 net new stores to its network.

Meanwhile, Eternal's food delivery business, Zomato, and Quick commerce vertical, Blinkit, recorded a significant rise in revenue, fuelled by ad income during FY25.

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According to the annual report, Zomato's food delivery revenue from operations grew 27% YoY to Rs 8,080 crore in FY25, driven by increase in commission income, ad income and platform fees.

The company noted that growth in ad income growth was driven by both net order values and improved ad monetization.

Advertising revenue is generated from the sale of online or offline ads, typically under a contractual period. In cases where a contract includes a guaranteed number of clicks or impressions, revenue is recognized only when both the time period and performance metrics are fulfilled.

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In contrast, Blinkit's revenue grew 126% YoY to Rs 5,206 crore in FY25. The quick commerce platform primarily generates revenue through commissions. Eternal stated that the revenue process for Blinkit is largely automated and heavily dependent on its IT systems.