Foodpanda India, the domestic arm of Rocket Internet’s food discovery and delivery business, saw its net losses widening by four times to R142 crore during FY16, according to the company’s filing with the registrar of companies.
Foodpanda India, the domestic arm of Rocket Internet’s food discovery and delivery business, saw its net losses widening by four times to R142 crore during FY16, according to the company’s filing with the registrar of companies. The increased losses were on account of higher investment in technology.
The company’s revenues during the period increased 700% to R37.8 crore. Its operating revenue stood at R37.6 crore. It earned R33.7 crore as commissions and R1.7 as marketing income. On an average, Foodpanda earns 15% commission but it is as high as 35% from restaurants which uses its back-end services also.
Foodpanda was not available for comments immediately.
The company recorded a total expense of R179.3 crore, up from R40.5 crore, a year ago. In FY16, the employee benefits expenses stood at R35.5 crore, up five times. The advertising expenses rose marginally to R28 crore from R21 crore in FY15 but the voucher expenses jumped by more than 500% to R56 crore during the year.
In a recent interview to FE, Saurabh Kochhar, co-founder and CEO of Foodpanda India said that the company has reduced its cost of customer acquisition by 20-30%.
In FY16, delivery charges for the company spiked from R1 crore in FY15 to R16 crore. According to Kochhar, of all the order it serves 25-30% of the deliveries are managed by the delivery fleet of Foodpanda. With further investments in technology it seeks to take the self-delivery portion to 50%. Currently, the company has a delivery fleet of 1,500-2,000 boys but the company seeks to strengthen it going forward.
Foodpanda has received funding worth $310 million since its inception in 2012 and majority of its was raised in 2015. In March, Foodpanda mopped $100 million in funding led by Rocket Internet and another $100 million by Goldman Sachs in May.