Around 10,000 restaurants that are participating Gold for delivery.
Zomato on Tuesday said its revenues increased by about 225% year-on-year to $205 million (Rs 1,457 crore) in the six months to September 2019. Food delivery that generates the bulk of the revenues — about 75% (according to Zomato’s FY19 annual report) saw a near 290% jump in order volumes in H1FY20 compared to the year-ago period.
The total value of food items sold (GMV) increased to $821 million (Rs 5,834.84 crore) during the period from about $254 million (Rs 1,805.17 crore) in H1FY19, the firm claimed. Zomato delivered a total 214 million orders in the first six months of FY20.
Founded in 2008, Zomato currently provides food delivery services in over 500 cities across India. Rival Swiggy is close with operations in over 450 cities, a company executive said.
Swiggy and Zomato, backed by deep-pocketed Naspers and Ant Financial, respectively, lead India’s food delivery market. While Swiggy so far mopped up close to $1.5 billion in funding, Zomato has raised close to $800 million in funding till date. According to analysts, Swiggy and Zomato jointly delivered about 96 million orders in the year to March 2018.
“Our order volumes in top 15 cities have doubled in the last 12 months; while the remaining cities already contribute 35% to our order volumes,” Zomato said in a business report. The firm added that average monthly transacting users on its delivery platform increased to 11.2 million in H1FY20 from 3.6 million in H1FY19. Average monthly active restaurants witnessed a rise of 177% during the period.
This comes at a time when restaurant body NRAI (National Restaurant Association of India) has lodged a protest against food aggregators like Swiggy and Zomato for resorting to predatory market practices including deep discounting and arbitrary commissions. Both parties have engaged in dialogue and have submitted their plan of action to NRAI. However, the deadlock is far from over with Zomato extending its gold program to delivery vertical.
Zomato said its monthly cash burn rate is down to around 60% of what it was six months ago due to ‘cost optimisation’. Analysts estimate food delivery firms’ monthly operating cash burn to be about $30 million (Rs 213.2 crore).
Dining out revenues for Zomato saw a 15% jump to $27.3 million (Rs 194.02 crore) in H1FY20. The firm said the number of restaurant listings globally has grown from 1.2 million in September 2018 to 1.5 million in September 2019 under its dine-out vertical. “Half of this increase comes from India alone,” Zomato said. The firm’s membership programme, Gold, is now used by 1.4 million members world wide.
Denying any impact of the logout campaign launched in August by restaurateurs, the firm said: “At the start of the campaign, we had about 6,100 restaurants in India on Zomato Gold (for dining out); as of today, we have about 6,300 restaurants.” Around 10,000 restaurants that are participating Gold for delivery.
The firm said its revenue from Hyperpure for H1 stands at $6.5 million (Rs 46.1 crore) compared to zero in H1FY19. In August last year, the Gurgaon-based firm acquired Bengaluru-based start-up WOTU and rebranded it as Hyperpure. It acts as a supplies platform for restaurants.