Food Delivery Giant Zomato’s Revenue Grows By $206 million
Zomato’s annual revenue run rate is now threefold to $350 million
Zomato is now available in 200 cities including additional 15 cities in the FY18
Delivery revenue for 2019 was $155 million (INR 1082 crore)
Zomato one of India’s leading food delivering and restaurant discovery mobile application. Launched in July 2008 by Deepinder Goyal and Pankaj Chaddah, Zomato runs in 24 countries such as India, New Zealand, Australia, Singapore, Brazil, and the United States and the middle Qatar and has joined the Unicorn Club.
Unlike its competitors, Zomato does not have a delivery system. Customers give their order through its mobile application on their smartphones and restaurants would accept the order and give it to the delivery personnel of Zomato. The company also holds a stack of information about restaurants. Zomato also assists new business owners to search and set-up a location-based on the success rate.
Zomato’s annual revenue run rate is now threefold to $350 million (2443.7 crores), but experienced losses of $294 million (INR 1738.5 crore), mainly from the firm’s food delivery business in India. The firm ascribed the losses to food delivery in the country for being fresh to the market. It cited the sample of 70% of the daily users in Kolhapur, Maharashtra never used food delivery services before, and Zomato being the foremost food delivery they had encountered. They are now available in 200 cities including additional 15 cities in the FY18.
Zomato claims to have changed over the past three years from investing only on advertising to now mostly a transactions company, with 85% of its revenue in March 2019 being generated by transactions. Delivery revenue for 2019 was $155 million (INR 1082 crore) compared with $38 million (265.3 crores) in last year presenting fourfold the annual growth providing to 75% of Zomato’s total revenue.
The annual report also had 70 million active Zomato users with five million newly added user registrations and 11 million app downloads monthly. Customers relation has also got bigger, with 16 million user review and pictures in this year’s March compared to 4.5 million in the previous year’s March. The firm accepted fresh investors and partnerships for 2019 including Shunwei Capital, Glade Brook Capital, and CDH Investments, also the new investors such as Sequoia, Vy Capital, Ant Financial, Info Edge, and Temasek.
Deepinder Goyal said, “We are assigned to providing the top food to everyone, despite who they are and what they can afford. In 2020, we are going to function regarding the making each of our customer a brand ambassador for our mission, and will make sure that every attempt we make, is to offer a pleasant contact to our customers every time they imagine food.”
Zomato finished FY18 with a 40% growth in revenues at $64 million (INR 446 crore). The company also cut its corners decreasing losses by approximately 73% to come in at $15.2 million (INR 106 crore) in FY18 as contrasted to $55.9 million (INR 390 crore) crore in FY17, according to the financial portfolio with the registrar of the companies. Comparing to Swiggy, Zomato’s competitors registered a 232% gush in revenue in FY18 at $63.3 million (INR 442 crore), with losses of $56.9 million (INR 397 crore).
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