India: Zomato posts $294m loss, three-fold jump in revenues in FY19

Photo: Mint

Online food ordering and discovery platform Zomato witnessed a high revenue growth over the last one year, but expenses rose at a much faster pace. The Gurgaon-based company saw its total revenues shoot up from $68 million in2017-18 to $206 million in 2018-19, primarily driven by the delivery vertical, according to the company’s annual report.

Zomato spent $500 million in 2018-19, a six times jump from $80 million in the previous year.

The company claims its annual revenue run-rate to be around $350 million, which is usually calculated based on the highest monthly revenue number.

While the delivery business has been a major contributor to the company’s revenue, it has also led significantly to Zomato’s losses of around $294 million.

According to the company, it has improved its unit economics over the last financial year. In 2017-18, the company used to spend around ₹44 per delivery, in 2018-19, Zomato reduced it to ₹25.

“Unit economics of the food delivery business has come a long way,” according to the annual report. “The key driver metric of unit economics — number of deliveries per rider per hour — has gone up to 1.4 from 0.9 last year.”

The company’s financials come at a time when Zomato is locked in an intense battle for market leadership with Swiggy.

Zomato Media, which owns the online food delivery and restaurant discovery platform, sold its UAE food delivery business to Germany’s Delivery Hero Group for about $172 million.

In contrast, its biggest competitor Swiggy secured $1 billion in a round led by South Africa’s Naspers, valuing the company at $3.3 billion.

This article was first published on livemint.com

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.