Saturday, September 23

Zomato scales FY18 revenue by 40%, Losses Fall Almost 73%

Online food delivery and restaurant discovery firm Zomato has ended the financial year 2017-18 with a 40% growth in revenues at Rs 466 crore. The firm also reduced its losses by almost 73% to come in at Rs 106 crore in FY18 as compared to Rs 390 crore last year.

According to the reports, the firm witnessed its standalone revenues grow almost 25% to Rs 388 crore in FY18 from Rs 309 crore last year. Also, the standalone losses for FY18 fell 86% to Rs 78.5 crore this time.

“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,” said Zomato Founder and CEO Deepinder Goyal.

The firm saw its total expenses rise only slightly by about 19% to Rs 370 crore in FY18 from Rs 460 crore in FY17. However, in FY19, the company expects to see its losses and expenses rise tremendously as the food tech industry is engaged in a discount-driven battle between Swiggy, Zomato, UberEats and Foodpanda.

“We had stopped hiring in our ads business as we really wanted to crack the transactions piece as an organisation. The number of people in our ad sales team is down 20% since last year, but our ads revenue for this year still grew 20% y-o-y. About 15,000 restaurants paid us for advertisements in the last year,” Goyal stated.