Zomato's Parent Deepens Its Bet on In-House Enterprise AI
The company behind Zomato and Blinkit is pouring more money into its internally built AI automation platform, even as the wider division housing the project posted a wider quarterly loss.
A quiet internal tool built to keep a food delivery and quick-commerce empire running smoothly is now being pitched as a standalone product for businesses everywhere, and its parent company is willing to absorb bigger losses to get it there.
An Internal Tool Goes Global
The AI platform, known as Nugget, was originally engineered to handle workflow automation inside the parent company's own food delivery and grocery operations. According to the platform's public profile, it has since been repositioned as a product enterprises around the world can adopt, handling tasks across communication channels such as voice and chat.
That shift from internal tool to external product line sits inside a broader catch-all division the company labels "Others," a segment that bundles together its newer and less-established bets.
Wider Losses, By Design
The Others segment's operating loss more than doubled compared to the same period a year prior. Company leadership attributed the bulk of that widening gap directly to heavier research and development spending aimed at building out the AI platform's feature set, rather than to weakness elsewhere in the business.
In other words, the losses appear to reflect a deliberate investment push rather than a decline in performance — a signal that management sees enough long-term upside in enterprise AI to justify short-term drag on segment profitability.
Turning an internal efficiency tool into a global enterprise product is a classic playbook move — and a costly one. The question now is whether this AI platform can scale fast enough to justify the growing price tag.
A Pattern of Momentum
This latest development follows a string of notable moves at the parent company, from foreign-ownership caps aimed at preserving its domestic-company status, to a sharp swing toward profitability at its quick-commerce arm, to large employee stock option grants and share price milestones. The timeline below traces some of the company's most significant recent moves.
- Bigger bet on AI. The company is increasing investment in its enterprise automation platform even as it weighs on near-term segment profitability.
- Losses more than doubled. The catch-all "Others" segment's quarterly loss grew sharply compared with the prior year.
- R&D is the driver. Leadership attributes the widening loss to product development spending rather than operational weakness.
- From internal tool to global product. What began as an in-house workflow solution is now being sold to enterprises worldwide.
- Part of a bigger picture. The AI push comes alongside a series of other high-profile moves across the company's core businesses.