Indian food delivery giant Zomato carries on a growth trajectory by achieving a 40% boost in revenues at ₹466 crores in FY18, as revealed by the documents filed with the Registrar of Companies.
While the startup scaled up in revenues, it was also able to cut its losses by 73% at ₹106 crores, compared to ₹390 crores in the previous financial year.
However, it is important to note that these are consolidated financials of Zomato for FY18, including the performances of its subsidiaries as well.
Zomato’s ability to achieve expansion and growth, while cutting down on its losses, as it fights with its arch-rival Swiggy for market dominance, will make its investors happy.
Deepinder Goyal, Founder and CEO, Zomato, said, “We demonstrated that our business can generate profits — almost throughout the year, we hit EBITDA breakeven 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.”
The food giant saw its standalone revenues grow almost 25% to reach ₹388 crores in FY18, compared to ₹306 crores in the previous year. It also lowered its standalone losses by a whopping 86% to ₹78.5 crores.
Zomato’s revenues increased slightly by 19% to reach ₹370 crores in FY18 from ₹460 crores in FY17.
Looking forward to FY19, Zomato is expected to see a growth in losses and revenues, as it steps up its growth and expansion, all the while trying to grow market share by providing huge discounts and offers, to stay competitive with its rival Swiggy, and other growing foodtech startups like Foodpanda and UberEATS.
Zomato clocked 13 million orders per month, compared to 19 million orders by Swiggy. While, Zomato achieved a higher cash burn at around $20-22 million, compared to around $18 million by Swiggy, according to industry estimates.
The startup’s changing focus from on other business verticals led to a decline in the growth of its largest revenue generating vertical Advertising, forming less than 40% of its overall revenue share.
Earlier this month, Zomato marked its 12th acquisition when acquired online corporate catering startup Tonguestun.
Last month, Zomato launched its food delivery service in seven tier 2 cities, as it looks to expand its outreach and grow market share.
With the growing competition in the food tech sector, all eyes will be on the two market leaders Zomato and Swiggy. It is also to be noted that other players like Foodpanda and UberEATS are also gaining market share slowly, owing to discounts and other incentives.