Zomato revenue grows 45 pct to $74 million in FY18

By: |
New Delhi | Published: April 3, 2018 4:02:10 AM

Food technology firm Zomato’s founder and CEO Deepinder Goyal on Monday announced that the company has posted 45% jump in gross revenue to $74 million in FY18 from $51 million in FY17.

zomato, food chain industryZomato’s advertising business witnessed a slow growth due to lack of focus, stated Goyal.

Food technology firm Zomato’s founder and CEO Deepinder Goyal on Monday announced that the company has posted 45% jump in gross revenue to $74 million in FY18 from $51 million in FY17.

Goyal 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.
According to Goyal, Zomato now delivers food orders in 15 cities in India and 5 cities in the Middle East. Goyal further wrote that as on March 31, 2018, the food technology firm has 2.8 lakh active user subscribers across two subscription programmes — Zomato Gold and Zomato Treats.

However Zomato’s advertising business witnessed a slow growth due to lack of focus, stated 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 by 20% y-o-y. About 15,000 restaurants paid us for advertisements in the last year,” he explained.

According to filings with the Registrar of Companies and data platform Tofler, Zomatoa Media posted a 108% increase in losses to Rs 585.2 crore in FY 17 from Rs 280.8 crore in FY16, revenue earned from operations increased 83% to `245.1 crore in FY17 from `134 crore in FY16. In FY17, the company’s earnings from the online food ordering business increased seven-fold to `60.7 crore, while it subscription revenue dropped four times to just rs 1 crore. Advertising revenue too increased 51% to `180.7 crore in FY17.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Google Android P: Top 5 features you cannot miss; check details
2Big deal! Paytm Mall raises close to Rs 2,900 crore from SoftBank, Alibaba
3In a big breather, RBI lets banks spread bond losses in 4 quarters