India: IPO-bound Zomato’s losses ballooned four-fold in FY20 as expenses rose

Photo: Zomato

Gurugram-based foodtech unicorn Zomato has seen its overall expenses rise by almost 50% year-on-year to 4,628 crore in 2019-20 (FY’20), according to documents sourced from business information platform Tofler.

The total expenses of the startup stood at 3,109 crores in the preceding year.

For FY’20, Zomato reported revenue of 2,486 crore, an 84% jump compared to 1350 crore in FY19. Its losses also ballooned four-fold to 2,451 crore in FY’20.

For the foodtech major which is looking to go public by the first half of this year, employee benefit expenses also increased from 409 crores in FY’19 to almost 621 crores in FY’20.

Additionally, other expenses for the startup also increased from 2631 crore in FY’19 to 3856 crore in FY’20.

In December, last year, Zomato founder and chief executive, Deepinder Goyal announced that the company has raised a total of $660 million, at a valuation of $3.9 billion, making it the highest valued foodtech unicorn in India’s startup ecosystem. Its competitor Swiggy is currently valued at $3.6 billion, as per its last equity fund raise.

Zomato’s fundraise saw 10 new investors join its cap table including – Tiger Global Management, Baillie Gifford, Luxor Capital, Kora Capital, Steadview, D1 Capital and Mirae Asset, Goyal said on Twitter.

At present the company is also raising $140 million as a part of a secondary transaction. With the current fundraise before its IPO, Zomato has cleared its cap table and provided liquidity worth $30 million to its former employees.

Mint had earlier reported that Zomato has appointed Kotak Mahindra Bank as its lead merchant bank for its proposed initial public offering (IPO).

As individuals continued to stay at home during New Year’s eve, foodtech players like Swiggy and Zomato also saw record sales on their platforms on December 31.

Zomato said it hit a record gross merchandise value (GMV) on 31 December. The platform hit a peak of 4,254 orders a minute in the evening, Goyal said, as the platform witnessed a 60% increase in GMV from previous New Year’s.

“The demand last night was much higher than what we could process. We ran out of delivery partner capacity much before peak time. If we had unconstrained supply, we could have hit 100 crores of GMV yesterday. Need to do better next time,” Goyal tweeted.

The article was first published on livemint.com.

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. 
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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.