Food technology firm Zomato Media’s losses before exceptional items and tax narrowed to Rs 106.3 crore for the year ended March 2018, as per the filings with the Registrar of Companies (RoC) and data platform Tofler.
The company had posted losses of Rs 201.4 crore in FY17. The company’s revenue from operations rose 40.3% to Rs 466.3 crore in FY18.
During the fiscal year, the company’s total expenditure was down 1.5% at Rs 591.4 crore, while employee benefit cost increased just 1% to Rs 290.4 crore. In February, Zomato Media had raised $200 million from Ant Small and Micro Financial Services Group at a valuation of about $1.1 billion.
Later in April, Zomato’s founder and chief executive officer Deepinder Goyal said that the company has posted a 45% jump in gross revenue to $74 million in FY18 from $51 million in FY17.
Goyal had made the announcement via company’s official blog – Zomato Blog. The company’s operating burn (loss) dropped 26% to $11 million in FY18 from $15 million in FY17. Of the $11-million burn, $6 million were incurred in two months – February and March this year – when the company decided to double down on growth.
“We are currently at an annualised revenue run rate of $100 million. We demonstrated that our business can generate profits almost all throughout the year, we hit Ebitda break-even globally, across all our business, and while maintaining good growth levels; and then in the last two months, we decided to double-down on growth,” Goyal said in the blog.
Moreover, food ordering accounted for 30% of the company’s revenue in FY18, when compared with 18% in FY17. Goyal in the blog claimed that company reached the 5.5-million mark in terms of monthly food orders in March 2018. However, Zomato’s advertising business witnessed a slow growth due to lack of focus, said Goyal.
“We had stopped hiring in our ads business as we really wanted to crack the transactions piece as an organisation. The number of people in our ad sales team is down 20% since last year, but our ads revenue for this year still grew 20% y-o-y. About 15,000 restaurants paid us for advertisements in the last year,” he added.