Zomato releases annual report card - From revenue to dining out, top highlights
The homegrown food discovery and delivery platform Zomato has released its annual report card for the FY18-19. The journey of the online food delivery platform has been a bumpy ride so far. Right from the viral video of its delivery boy eating customers' food to its 'offensive' ad campaign, the company has taken steps to get the things right. Zomato said that it has published the third annual report for three reasons - 1) As a recruitment pitch for readers who might identify with our mission, 2) Set a precedent for when we go public and 3) To demystify the food–tech ecosystem. Below are the key highlights of the report:
Zomato: FY19 Financials
Zomato has registered a 3X revenue growth in FY19 at $206 million while its costs stood at $500 million. "Most of the losses ($294m) are on account of the food delivery business in India.....Food delivery in India is creating an entirely new market; 70% of our regular users in Kolhapur had never tried food delivery in their life (even over a phone call), and Zomato was the first food delivery experience of their lives. All the marketing investment we made in FY19 will bear fruit in FY20 and beyond - when we realise the LTV (Lifetime Value) of the users that we have acquired," it said.
Zomato: The year of the ecosystem
Zomato said that today it is present in over 10,000 cities across the globe with over 1.4m active restaurants on its platform. "We are the market leaders in restaurant search/discovery in 19 of the 24 countries we are in and have 70m monthly active users on our platform. We have 5m new user registrations and 11m app installations (Android + iOS), every month.
User engagement has grown very well — we received 16m user reviews and photos in March’19, compared to 4.5m in March’18," it claimed.
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Zomato Revenue growth: Advertising to transactions
"Three years ago, advertising represented 100% of our revenue and focus. Today, we are largely a transactions company — 85% of our revenue in March’19 was driven by transactions," it said.
Zomato: Dining out
Zomato Gold has partnered with over 10,000 restaurants globally to offer either 1+1 on food, or 2+2 on beverages for its Gold subscribers. "Zomato Gold will continue to be a program that constantly provides benefits that are uniquely designed for users who see great value in frequently dining out. As on 31 March 2019, we have over 1m active subscribers of Zomato Gold globally compared to 170k active users as on 31 March 2018," it said.