Zomato triples revenue, cuts cash burn by 60% in H1 FY20 amid controversies

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Updated: October 1, 2019 4:40:04 PM

Zomato also claimed a massive jump in its food delivery business, both in terms of orders and gross merchandise volume (GMV).

Zomato along with other portal offering dine out services have of late been criticised deep discounting. (File photo)

Even as the past few weeks have been a roller coaster ride of sorts for the foodtech unicorn Zomato, the company has ensured least hit on its growth as it announced 225 per cent increase in its revenue from $63 million in the first half (H1) of FY18 to $205 million in H1 FY20 in its half-yearly report. Zomato chief Deepinder Goyal also claimed monthly burn rate down to 60 per cent from what it was six months ago even as it didn’t disclose the amount here.“We achieved tremendous results in optimising our costs, without affecting new product launches or innovation,” Goyal said in the report.

Goyal, however, wasn’t available for comments on the financials and categories.

Zomato along with other portals offering dining-out services have of late been criticised for deep discounting that led to the nationwide campaign of delisting of restaurants launched by restaurant body National Restaurant Association of India. The campaign saw over 2,500 restaurants logging out.

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Goyal also claimed a massive jump in its food delivery business, both in terms of orders and gross merchandise volume (GMV). While the orders went up by 290 per cent from 55 million to 214 million, the GMV increased by 223 per cent to $821 million from $254 million between the said period. From 200 cities this year April, Zomato has expanded its food delivery service to more than 500 cities across India and are “contribution margin positive across the country,” Goyal said.

Earlier in August this year, Zomato won the internet for its “food has no religion” comment following a Jabalpur customer’s complaint against a delivery partner who was a non-Hindu and had demanded a refund. In July, a consumer court in Pune had reportedly fined Zomato along with a hotel for Rs 55,000 for delivering a non-vegetarian dish to a lawyer who had ordered vegetarian food.

Here are the other statistics reported by Zomato:

  • 211 per cent increase in average monthly transacting users from 3.6 million to 11.2 million
  • Average monthly active restaurants and delivery partners increased from 43,000 to 1.19 lakh and 49,000 to 2 lakh respectively.
  • Restaurant listings globally increased from 1.2 million in September 2018 to 1.5 million in September 2019.
  • Dining out service Zomato Gold, which has been the centre of logout campaign, grew from 0.5 million members in September last year to 1.5 million in September this year globally while the revenue from the service increased 15 per cent from $23.8 million in H1 FY19 to $27.3 million in H1 FY20.

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