Zomato Seals the Largest Warehousing Deal of 3 lakh sq ft with Sumadhura Group

One of the fastest growing foo tech and e-commerce platform Zomato is leasing out  3.08 lakh sq ft at Sumadhura Logistics Park near Bengaluru, confirmed by the developer.

The building where Zomato leased spaces is a build-to-suit warehousing park, developed by Bengaluru-based Sumadhura Group and the deal has been locked in for seven years. On the other hand, this is the largest warehouse space leased by Zomato in India.

Commenting on the leasing deal, the CMD Sumadhura Group, Madhusudhan G said, "This collaboration with Zomato marks a significant milestone in our journey as we work towards expanding our clientele in the logistics and warehousing space. This is a strategic move for our group, driven by the increasing demand for warehousing solutions in Bengaluru, particularly in East Bengaluru and surrounding areas." 

The Sumadhura Group has made an initial investment of Rs. 600 crore in the first phase of Sumadhura Logistics Park, which spans 100 acres and offers 2.5 million sq ft of commercial warehouse. According to the statement of Zomato, it is revealed that, it aims to increase the total warehouse space at Sumadhura Logistics Park to 6 million sq ft in the next phase.

The retail platform has emerged as one of the fostering force for warehousing demand in India over the last five years. A recent report by CBRE unveils that, within 2019 to 2022, their share increased from 8 percent to 13 percent. The report also reveals that, the collective warehousing demand for e-commerce, FMCG, and retail sectors accounted for nearly 27 percent of the total demand from 2019 to H1 2023.

Zomato reported a net profit of Rs. 138 crore for the October-December period, marking the third straight quarter of the food aggregator’s earnings coming in the green. The revenue went up to 69 percent year-on-year to Rs. 3,288 crore at a time when the broader e-commerce sector is reeling under the pressure of high inflation and muted demand.