Zomato has demonstrated financial results pretty much in line with its Chief Executive Deepinder Goyal’s past projection. The Alibaba-backed company has recorded 40 per cent growth in revenue to Rs 466 crore in FY18 from Rs 332 crore last year.
The company has slashed losses in the tune of 73 per cent to Rs 106 crore in FY18 from whopping Rs 390 crore in the preceding fiscal.
Although, the reduction in losses seems temporary for Zomato as it has fiercely been competing with rivals Swiggy, UberEats, and resurgent foodpanda. The trio has been bleeding profusely for acquiring customers as well as onboarding delivery personnels.
Zomato’s standalone revenue recorded 25 per cent jump to Rs 388 crore in FY18 from Rs 309 crore in the preceding fiscal. The company’s expenses recorded a reduction of about 19 per cent to Rs 370 crore in FY18 as compared to from Rs 460 crore in the previous fiscal.
Zomato in FY19
Continuing its spree of launching loyalty programmes, Zomato had launched Piggybank. It lets consumers save 10 per cent every time they order online. Launched in July, Piggybank attracted 1 million members in just two months who placed over 2 million orders through it.
The company also claimed to narrow down the gap in online ordering with Swiggy. While Swiggy processes about 18 million deliveries a month, Zomato claims 16.5 million online orders on a monthly basis.
With a growth of 40 per cent in first two months of this year, Zomato also claimed to hit Rs 700 crore in annual revenue run rate as of March 2018. It did about Rs 57 crore in revenue in the aforementioned month.
At the beginning of this financial year, the Gurugram-based company also revealed its intention to enter farm to fork business. Recently, it also started delisting thousands of restaurants following the FSSAI diktat of weeding out uncertified restaurants from online ordering platforms.
The development was reported by ET.
Update: We have updated the headline with a reduction in the loss by 73 per cent. It was mistakenly written as 40 per cent. Error regretted.