Equity research firm Jefferies has marked-down the valuation of restaurant discovery platform Zomato. The research firm, in its latest report, has valued one share of Zomato at R130 as against R191 during the same period last year. The company’s valuation has been halved to $500 million.
This is in line with what HSBC Securities and Capital Markets downgrade in May this year. According to the disclosure made by its investor Info Edge for the year ending March 2016, Zomato reported a higher loss of R247 crore on revenues of R87.5 crore for India business. In FY15, it had posted a loss of R62.3 crore on revenues of R46 crore.
Zomato’s overall revenues in FY16 stood at R184.97 crore, of this 47.3% came from India. While restaurant discovery platform’s overall net loss for 2015-16 stood at R574.5 crore. According to several media reports, Zomato’s CEO Deepinder Goyal in the past had admitted to the drop in revenue in two of its largest markets – India and UAE. He had said that the company is witnessing about a 2% drop every month. Zomato counts Sequoia Capital, Temasek and VyCapital, besides InfoEdge, as its investors with the latter owning 47% stake. Zomato was founded by Deepinder Goyal and Pankaj Chaddah in 2005 and was initially called Foodiebay.com.