Online food discovery and delivery platform Zomato has been on a growth spree. In a recent tweet, Zomato’s CEO Deepinder Goyal claimed that the company has hit $100 million in annual revenue run rate as of March. Besides, it has grown 40 per cent in just the last 2 months.
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 run rate refers to the financial performance of a company based on using current financial information as a predictor of future performance. It refers to the extrapolation of financial results into future periods.
It means the company would have clocked a monthly revenue of $8.2 million in March that would lead to an annualised revenue run rate of $100 mn.
In last fiscal, Zomato’s annual revenues stood at $49 million of which online ordering contributed $9 million.
Importantly, the company has been achieving the growth on the back of a subscription service it launched three months ago. Early this month, Zomato announced the subscription-based Zomato Gold membership programme has amassed around 15,000 users in India.
Zomato Gold is a membership programme for premium dining out and social drinking experiences. It has been experimenting with various kinds of programmes to improvise its offerings and maintain a loyal customer base.
In April last year, Zomato had launched ‘Zomato Treats’, at a subscription fees of Rs 249. It lets subscribers avail a free dessert with every meal they order across 16 cities in India.
The food discovery and order platform also announced a commission-free campaign for its restaurant partners in September last year.
Last year, the company also claimed to achieve profitability in all the 24 countries of the world where it operates.
Zomato has been following an aggressive growth path. Last month, Alibaba-owned entity Alipay pumped-in $200 million in the food tech major.
It is competing against its rival Swiggy in the food delivery space. Following the Alibaba investment, its arch-rival Swiggy received $100 million in a Series F round from Naspers and Tencent-backed Meituan-Dianping.
Over the past couple of years, the food-tech space in India is currently on a rise. As per a report by RedSeer, India’s online food delivery market comprising of aggregators and cloud kitchens grew at 150 per cent last year.
The development was first reported by ET.