LIVEMINT: Zomato’s revenue doubled to Rs399 crore in 2016-17, losses fell
LIVEMINT: Revenues at Zomato Media Pvt. Ltd doubled to Rs399 crore in the year ended 31 March 2017, even as the restaurant discovery and online food delivery start-up reduced its losses.
Net loss at Zomato fell to Rs389 crore in the year ended 31 March 2017 from Rs590 crore in the previous year, according to its financial statements available with Tofler, a business information provider.
Zomato, which is present in 23 countries, earns revenues from advertising and food delivery.
In 2016-17, Zomato, a late entrant into the food ordering and delivery business, expanded the business to try and catch up with rival Swiggy (Bundl Technologies Pvt. Ltd). It shut operations in nine countries in 2016, managing the markets from India, as it sought to reduce costs. Zomato also cut jobs and salary increments for employees in that year.
Now, Zomato is looking to expand, as the online food delivery sector—written off not too long ago—has seen a revival over the past six months. While Zomato and Swiggy have raised large funding rounds, cab-hailing firms Uber and Ola, attracted by the runaway expansion of Swiggy, are investing hundreds of crores of rupees to gain a slice of the market.
Bengaluru-based Swiggy leads the food-delivery stack with a 35-38% market share, followed by Zomato at 25-30%, according to RedSeer Consulting, an internet-focussed consulting firm in India.
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