The food-tech firm currently has two events - Zomaland and Zomaland Picnic under its banner.
Intellectual properties (IP) play a dual role – on one hand, it allows companies to use it as a platform to market the brand, on the other hand, it acts as an additional revenue stream. Drawing a leaf from this, food-tech firm Zomato has rolled out its own IPs under – Zomaland and Zomaland Picnic. “As the events business, we aim to be cash flow positive in the next two-three years. The two properties will not only aid in increasing the discoverability of food as far as consumers are concerned, but it will also serve as a great marketing tool thereby bringing Zomato closer to consumers. Besides these acts as a new revenue stream,” Chaitanya Mathur, global head, events, Zomato, told FEBrandWagon (Online).
Zomaland is the larger event, which will be held in key cities including Delhi, Mumbai, Bengaluru, Hyderabad, and Pune; the other format is called Zomaland Picnic – a two-day mini carnival which will be held in Jaipur, Chandigarh, Kolkata, Chennai, and Ahmedabad. Besides Toyata, Zomaland has got two more sponsors including TikTok as co-partner and The Singapore Tourism Board (STB) as a partner. According to Mathur, currently, sponsorship revenue contributes to one-third of the cost of the event. “At the same time, it does help in improving the brand image. As the scale of the event grows, we hope to get more partners on board,” he added.
In addition to charging consumers anywhere between Rs 200 – Rs 400 for Zomaland and Rs 100 – 200 for Zomaland Picnic, the food-tech firm sells VIP tickets. “The cost of early bird tickets ranges between Rs 500 – Rs 1,000 per person. We try to up the experience for buyers of VIP tickets by providing access to artists, among others. Also, tickets, depending on the category, at the gate costs a lot more between Rs 10,00 – Rs 2,00 per person,” Mathur explained.
The food-tech firm claims that while Zomaland generates a footfall of 40,00 – 50,000 at every venue, Zomaland Picnic clocks 15,000 – 20,000. Further, Zomato charges the restaurants that set-up stalls at the venue. However, Mathur stated that the model is largely restricted to Zomaland presently and the cost of a stall completely depends on its nature. “For instance, some restaurants like to have seating and it would focus replicating the same ambience a customer gets when she walks into the eatery, while some would go for an over-the-counter stall,” he noted.
For Zomato the next move would be to expand Zomatoland Picnic to other cities, as it introduces newer formats, besides going international. “ We are also looking at various partnership deals. Also, as early as next month we will roll-out another IP called ‘Zomato Park’,” Mathur said. As for its international expansion plans are concerned, the company plans to roll-out an event early next year in Dubai.
Early this month, the food-tech firm announced that its monthly burn rate has reduced to 60% to what it was six months back. Its revenue has increased by over three-fold $205 million between April-September 2019 from $63 million, in the same period, in the previous year.