Zomato looks to become profitable by end of 2020
Online restaurant guide and food ordering platform Zomato is looking to be a profitable company by the end of 2020, a top company official said.
"In a year's time, we should be a profitable company. We have been able to reduce our cash burn by around 70 percent from what it was seven months ago," Zomato founder and CEO Deepinder Goyal told PTI.
The startup's current cash burn is $15 million per month, he added.
Deepinder Goyal, Co-founder and CEO, Zomato
Earlier in October, Zomato had said it has witnessed over three-fold jump in revenue to $205 million (around Rs 1,458 crore) for April-September 2019 from $63 million (around Rs 448 crore) in the same period a year ago.
The company recently announced plans to raise up to $600 million (around Rs 4,277 crore) by next month in a new funding round.
When asked about the segments the company will be focussing on for growth, Goyal said it will be on all segments.
It is making all efforts to achieve its mission, 'Better Food for Everyone', he added.
Earlier in July this year, Zomato completed 11 years. Co-founded by Deepinder Goyal and Pankaj Chaddah in 2008, the startup launched its operations by scanning and putting restaurant menus online.
The company diversified itself from restaurant search company to food delivery company, and the startup has expanded to 24 countries and serves 10,000 cities globally.
The food delivery platform is backed by Silicon Valley venture fund Sequoia Capital, Singapore Government's Temasek Holdings, and Indian ecommerce player Info Edge.
Currently, Zomato has three business segments – Food Delivery, Dining Out, and Sustainability.
"We achieved tremendous results in optimising our costs, without affecting new product launches or innovation," Deepinder said, adding that "we will shoot for market leadership, and simultaneously steer the business towards a more sustainable P&L."
Known as the 'backbone' of Zomato's operations by the CEO, the average monthly active delivery partners also saw a spike of 308 percent in the first half FY20. Currently, more than 2,00,000 delivery partners are associated with the food aggregator.
(Disclaimer: Additional background information has been added to this PTI copy for context)
(Edited by Saheli Sen Gupta)