Food technology firm Zomato Media has posted a 108% increase in losses to Rs 585.2 crore in the year ended March 2017, according to filings with the Registrar of Companies and data platform Tofler. The company had reported losses of Rs 280.8 crore in FY16. Revenue earned from operations increased 83% to Rs 245.1 crore in FY17 from Rs 134 crore in FY16. In FY17, the company’s earnings from the online food ordering business increased seven-fold to Rs 60.7 crore, while it subscription revenue dropped four times to just Rs 1 crore. The company reported revenue of Rs 7.4 crore from its online food-ordering business in FY16, while revenue from subscription stood at Rs 5.2 crore. Advertising revenue too increased 51% at Rs 180.7 crore in FY17 from Rs 119.7 crore in FY16. The company’s employee benefit cost and total expenses rose 11%, respectively, to Rs 186.5 crore and Rs 369.6 crore. The India operations losses widened 132% to Rs 593.1 crore while revenues increased 95.3% to Rs 170.9 crore.
Zomato raised $150 million in a fresh round of funding from Alibaba-owned Ant Financial Services in March this year. In a separate transaction, Ant Financial also bought $50 million worth of shares from Info Edge, taking its total investment in Zomato to $200 million. Following the transaction, Zomato is valued at around $1 billion. At the time the food-tech firm had said that the investment would be used to further build the product and technology to provide a seamless experience.
The company also plans to strengthen its payment options in partnership with Ant Financial. In September 2017, equity research firm Nomura Financial Advisory and Securities India raised Zomato’s valuation to $1.4 billion from $1 billion. The increase in valuation was based on the last fund exercise taken up by the company in September 2015. Zomato had raised $60 million from Singapore’s Temasek Holdings and existing investor Vy Capital.