Zomato doubles its revenue from India while its losses triple this fiscal
The online food ordering app earned Rs 87.5 crore while it incurred a loss of Rs 247 crore.
Online restaurant and food app Zomato's India operations doubled its revenue to Rs 87.5 crore in the fiscal 2015-'16 at a time when the the company also saw its overall losses triple. According to investor Info Edge, which owns 47% stake in Zomato, the overall revenue of the company stood at Rs 184.97 crore, of which India alone accounted for 47.3%. Last fiscal, Zomato's revenue from India was Rs 46 crore.
Zomato also incurred a loss of Rs 247 crore in India, at least three times higher than its Rs 62.3 crore loss in 2015. Overall, the company's loss stood at Rs 574.5 crore this fiscal, reported Economic Times.
The company's Chief Executive Officer Deepinder Goyal said revenue share of both its big markets – India and UAE – had dropped from 65% last year to 50% as of May 2016 and that they are witnessing an approximate drop of 2% every month. He said this was because of revenue growth from other markets.
Zomato had said it broke even in six countries including India, the UAE, Lebanon, Qatar, the Philippines and Indonesia in February. The decision to remove its physical presence in nine out of 23 operational markets, including the United States and Canada, and operate them remotely from its Gurugram office will reduce its costs from $9 million (Rs 61 crore) to $1.6-1.7 million (Rs 10-11 crore).
Most of Zomato's earnings come from online advertisements. The company owes 91.4% of its revenue to ads. Revenue from online ads shot up by 76.1% to Rs 169.1 crore in this fiscal from Rs 96 crore in the last financial year. In India, at least 20% of revenue also comes from its ordering business.