Delivery Hero-owned food ordering and delivery platform Foodpanda has reported a net loss of Rs 44.81 crore for fiscal 2016-17.
However, the Gurugram-based company has reported 64% spike in its revenues to Rs 62.16 crore in FY 2016-17 as against Rs 37.81 crore in the previous fiscal, reported PTI. It had posted a net loss of Rs 142.64 crore in the fiscal year 2015-16.
This is a good news for the company that has been struggling to maintain its marketshare amidst onslaught from rival Swiggy and Zomato.
During 2014-15, Foodpanda had splurged heavily on discount and marketing. However, over the past 18 months, it stopped burning capital towards marketing.
“The growth that we are seeing year-on-year is only encouraging us to push the boundaries further in a profitable fashion. We are rigorously moving towards strengthening our technology and delivery services in cognizance of the $50 billion worth of food services industry in the country. Keeping customer centricity at the core, we are making the food ordering experience seamless, personalised and intuitive,” said Foodpanda India Co-founder & CEO Saurabh Kochhar in a press statement.
At present, Foodpanda claims to fulfill 50% orders by in-house riders while remaining is being done through third-party logistics companies.
Last year, Foodpanda was trying to exit from India but it didn’t find a buyer even with a modest price tag of $10-15 million.
WhileFoodpanda continues to struggle, rivals Swiggy and Zomato had grabbed more marketshare and funding as well.
Swiggy raised $80 million Series A funding led by Naspers in May 2017. Zomato also bagged $20 million round from existing investors as well as two new investors including WhatsApp’s Neeraj Arora.
Zomato claims to do about 3 million orders a month and Swiggy does 4 million. In comparison, volume processed by Foodpanda is considerably low.
According to research firm RedSeer, India’s online food delivery market comprising of aggregators and cloud kitchens grew at 150% last year, in comparison to 2015, with an estimated Gross Merchandise Volume (GMV) of $300 million in 2016.