Zomato reports $206M revenue in FY19, 3x growth from FY 2018
In its annual financials for FY19, Zomato's Co-founder and CEO Deepinder Goyal said that the company has seen a 3x jump in its revenue from last year.Sindhu Kashyap
In its official blog, foodtech company Zomato announced its annual financials for FY19. Co-founder and CEO Deepinder Goyal wrote,
"This year, we hit all of the goals we had set for ourselves out of the park. Our core lines of business continue to be key contributors, and the new initiatives we’ve launched have started playing a big role in consolidating and cleaning the food value chain."
He added that in FY18, the company had a revenue of $68 million, while it touched $206 million this year. The blog also stated that the company's current annual revenue run rate is $350 million. However, while the revenue jumped to $206 million, costs too jumped from $80 million to $500 million.
The blog said:
"Most of the losses ($294million) are on account of the food delivery business in India. We have had tremendous growth aided by promotional marketing spends to acquire new users and be the first-to-market in many cities in India."
Deepinder wrote that close to 85 percent of the company's current revenue has been driven by transactions. In terms of the online food delivery business, Zomato claimed that in FY18, it had clocked $38 million, while it was at $155 million this year. The blog stated that delivery contributes to 75 percent of its total revenue.
"We now operate the service in over 200 cities in India, up from 15 cities in FY18; and we made nearly 33 million deliveries in March’19."
The founder added that Zomato has been working on the delivery business on a unit economics level, saying that it now loses Rs 25 per delivery, compared to Rs 44 per delivery in March 2018. Additionally, its last mile cost per delivery is at Rs 65, compared to Rs 86 in March 2018.
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.
Hyperpure, Zomato's farm-to-fork B2B model, reported a revenue of $2 million. The official blog said:
"In February 2019, a 30,000 sq. ft warehouse, built to serve 4,000 metric ton capacity per month, was launched in Bengaluru to cater to 2500 restaurants every day. An even larger 40,000 sq. ft warehouse in Delhi was launched in March’19."
In February Zomato raised $40 million led by US-based private investors Glade Brook, according to the company's filings with the Registrar of Companies (RoC). This fund raise is reported to be a part of a larger $1 billion round Zomato is raising from existing investor Ant Financials and new investors.