India, Nov. 6 -- A year after Eternal (formerly Zomato) acquired Paytm Insider for a staggering INR 2,048 Cr, at roughly 6-7X of the latter's FY24 revenue, the foodtech giant is struggling to justify the price tag of its ambitious 'going-out' bet.

While District (the app built atop that acquisition) is being touted as Eternal's next big growth engine, its numbers paint a different picture.

In Q2 FY26, District's revenue rose 23% year-on-year (YoY) to INR 189 Cr but declined 9% sequentially from the previous quarter.

Losses widened 19% to INR 57 Cr, erasing the profit of INR 18 Cr the business posted in the same quarter last year (Q2 FY25). For a platform once touted as the future of Eternal's lifestyle ecosystem, its short-term perform...