Food delivery and restaurant discovery company Zomato has recorded a three-fold jump in revenue to USD 206 million in FY19. Its losses went up five times.
In its annual report for 2018-19, the Gurgaon-based company said its costs had risen to USD 500 million, compared to USD 80 million in FY18. According to calculations made by Economic Times, the company’s monthly burn is estimated at USD 24.5 million.
The Ant Financial and Sequoia Capital-backed company said a major part of the losses was aided by promotional and marketing activities for the food delivery business.
CEO Deepinder Goyal said in the report, “We now lose Rs 25 per delivery, compared to Rs 44 per delivery in March 2018. Our last mile cost per delivery is now Rs 65, compared to Rs 86 in March 2018. The key driver metric of unit economics—the number of deliveries per rider per hour—has gone up to 1.4 from 0.9 last year.”
In March, Zomato sold its UAE food delivery business to Germany’s Delivery Hero Group for USD 172 million.
Recently, HSBC Global Research valued Zomato at USD 3.6 billion, while its arch-rival Swiggy is reportedly valued at USD 3.3 billion after it raised USD 1 billion in a round led by South Africa’s Naspers in December 2018.
Zomato has a presence in an estimated 10,000 cities across the globe with over 1.4 million active restaurants on its platform. It claims to be the market leader in search and discovery in 19 of the 24 countries it is present in. The annual report also said it has 70 million active users on its platform.