Food delivery startup Zomato doubled its revenue to $394 million in 2019-20, on a loss of $293 million. In the June quarter, given the impact of covid, it reported revenue of $41 million on a loss of $12 million.
In FY19, the food aggregator unicorn reported a revenue of $192 million and a loss of $277 million.
The covid-19-led lockdown has severely impacted the food delivery business in India, as several restaurants remained shut over the past few months, and home delivery orders took considerable impact.
“Right after the rise of covid-19 cases in India towards the end of March, our food delivery GMV hit its lowest point in two years – GMV (gross merchandise value) was 80% down in the last week of March 2020, compared to our peak pre-COVID-19 week (in mid February),” said Deepinder Goyal, founder & CEO of Zomato.
The Gurugram-based company also said that through the acquisition of Uber Eats, earlier in January, this year, the startup also gained market share and reported a 108% increase in GMV in FY’20.
Zomato’s GMV increased from $718 million in FY19 to $1.49 billion in FY20.
Now, with growth being stunted, Zomato expects its burn rate to land under $1 million, and monthly revenues to come back to 60% of pre-covid peaks, with full recovery expected in the next 3-6 months.
“Covid-19 has positively impacted the health of our business – we seem to have gained 2-3 years along this vector. In July 2020, we estimate our monthly burn rate to land under $1 million, while our revenue should land at approx. 60% of pre-covid peaks ($23m per month). We expect to make complete recovery over the next 3-6 months while continuing to maintain tight control on costs/profitability,” said Goyal.
However, with offices opening up, Zomato is expecting a sharp recovery.
Along with this Zomato’s contribution margin also increased to ₹27 per order delivered, in the June quarter, this year. Last year, in June, Zomato was losing ₹47 per order for delivery.
Additionally, Zomato’s revenues from dining out products also increased to $56.1 million in FY20, as its loyalty programme, Zomato Gold (now Zomato Pro) saw an uptick in subscribers, from 1 million in FY19 to 1.7 million in FY20.
This article was first published on livemint.com.