Zomato, an online restaurant discovery and food delivery platform is set to review its revenue streams after their FY18 revenue history showed that online food ordering and premium subscription service Zomato Gold were the leading streams of revenues as far as the firm’s growth pace goes.
According to the company, their annual revenue run rate reveals that they have hit Rs 650 of revenue run rates and Zomato Gold generated more revenues.
“Zomato’s hit $100M annual revenue run rate this month. 40% growth in just the last two months. Loving the momentum!,” wrote CEO Deepinder Goyal on the micro-blogging site Twitter.
Zomato’s hit $100m annual revenue run rate this month. 40% growth in just the last two months. Loving the momentum. cc @mukund1981 @gauravg1181 @deeppurpled @gunjan2307 @elegantlywasted @akshant_g @tukster16 (?x 100 x 1e6)
— Deepinder Goyal (@deepigoyal) March 22, 2018
The $100 million of annual revenue run rate refers to the financial performance of the company based on the current financial information available to predict future performances. It only exploits the current financial performance and forecasts that current conditions will persevere. In Zomato’s case, it means that a monthly revenue of $8.2 million in March would lead to an annual revenue run rate of $100 million.
The figures regroup the revenues from all the 9 countries where Zomato operates while the greater portion of their growth comes from UAE and India; countries where Zomato provide their food ordering business.
“Zomato Gold and online food ordering business are growing at a hyper pace for us. Online food ordering is currently about 40% of our revenues and Zomato Gold is about 12% of our revenues,” said a spokesperson of Zomato.
Zomato filed revenues at Rs332.3 crore ($49 million) in revenues as of FY17 as their online ordering service served 18% of revenue generation with Rs58 crore ($9 million).
In 2017, Zomato doubled its online ordering business as it went on a head-to-head duel with rivals Swiggy and the efforts bore their fruits as the service earns Zomato with almost half of its revenues. Zomato currently registers between 3-3.2 million orders every month for its online ordering business while Swiggy still has a little bit of edge, clocking more than 4.5 million orders monthly.
The Zomato Gold Service has been established only 3 months ago but grew at an unprecedented speed as the package already possess 150,000 subscribers, said CEO Goyal in a tweet earlier this month.
Thanks everyone for the overwhelming love. Yesterday, we launched the new & improved Zomato Gold in UAE and the memberships were sold out in less than 12 hrs.
Fret not if you missed!
Sign up now and we’ll let you know when we open up subscription again: https://t.co/wsmWFWI35b pic.twitter.com/vZVlwDJDjT
— Deepinder Goyal (@deepigoyal) March 16, 2018
Zomato Gold was meant to be a drinks-only service offered in Portugal and UAE but its popularity forced the firm to expand the service to include food-based deals as well and now includes 2,300 restaurant partners in India.
Zomato’s upward trajectory with revenues and growth in their new business streams come on the back of a re-arrangement of roles after co-founder Pankaj Chaddah quit the company a few week ago and several top executive changes ensued.
The company is also strong after Ant Financial, an affiliate of Chinese e-commerce giant Alibaba, fueled the company with a $150 million fund that set the valuation of the company at $1.1 billion in February.