After hitting $100 Mn revenue run rate in 10 years, Zomato eyes next $100 Mn in a year

Zomato
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After touching $100 million revenue run rate in ten years, Deepinder Goyal, co-founder and CEO of Zomato sees recording next 100 per cent growth in revenue within a year time.

“Now, the revenue is vertically inclined, so, within this calendar year, we might hit $200 million,” Goyal told Factor Daily in an interview.

The restaurant listings and food ordering firm had hit $100 million in annual revenue run rate in March this year. The firm claims to have recorded about 45 per cent increase in revenue in FY18 to $74 million.

At present, it clocks over 7 million deliveries every month. It operates in 24 countries and said to be profitable in almost all the geographies.

Goyal added that the company has been achieving the growth on the back of an increased number of deliveries and subscription services including Zomato Gold and Treats.

Gold lets subscribers avail free drinks and food everytime they dine while Treat offers complimentary dessert on food ordering.

The Gurugram-based firm claims to grow 20 per cent week on week. When asked about competition, Goyal said he doesn’t think about the competition. His firm is more focused on number one position.

In India, Zomato primarily competes with Swiggy, which started food delivery in early 2014 before Zomato. At present, Swiggy does about 10 million orders a month.

Zomato rules the specialised cuisine segment by striking exclusive partnerships with restaurants. Close to 80 per cent of its ordering takes place through its parent app. However, Swiggy holds upper hand in merchant side of the business.

The company had acquired logistics company Runnr to ramp up its delivery part. Of late, both the firms are eyeing substantial funding to have an upper hand in the capital-intensive food delivery business

Meanwhile, Swiggy is reportedly in advanced talks with DST Global and New York-based hedge fund Coatue Management to secure over $100 million round.

Launched in 2008, Zomato has scooped up roughly $443.8 million in total investment, according to CrunchBase. In Feb, Zomato had raised $200 million round from Ant Financial.

Last year, Morgan Stanley valued Zomato at $2.5 billion and predicted to touch $6.7 billion in a decade time. It counts Singapore’s Temasek Holdings, Vy Capital, Info edge and Sequoia Capital as its investors.

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