According to a report release by Info Edge, an investor which currently owns 47 percent of Zomato, the online restaurant aggregator and food delivery platform, the company doubled its revenue during fiscal year 2016 while the losses continue to mount. Revenue for the company increased from Rs. 46 crore to Rs. 87.5 crore in the Indian market, which accounts for 47 percent of Zomato’s overall revenue, standing at Rs. 184.97 crore for fiscal year 2016.
Although the revenue for its Indian market has doubled, the company has turned in significant losses, accounting for nearly Rs. 247 crore during the fiscal year. The figure is three times the amount the company incurred during the previous fiscal year, Rs. 62.3 crore. The company has spent nearly Rs. 76 lakhs on its food delivery service as well as Rs. 44 crore on advertising and sales promotions, according to Economic Times, double the amount of Rs. 22.3 crore it spent during last year.
Deepinder Goyal, Zomato’s CEO, recently attributed the drop in revenue share in two of its biggest markets, India and UAE, to the revenue growth the company has achieved in other international markets. The revenue share dipped from 65 percent last year to 50 percent during the fiscal year of 2016. Earlier this year, the company reported an operational break-even in six markets it currently has a presence in – India, the UAE, Lebanon, Qatar, Philippines and Indonesia.
Zomato has come under scrutiny this year with the release of a report from HSBC which reportedly took a hit on the company’s valuation. One of the India’s few unicorn companies, Zomato saw his valuation cut in half to $500 million. The company has also pulled out its physical presence from US and Canada with the operations for these markets currently conducted remotely from its Gurugram office. Zomato first entered the American market through a $52 million acquisition of Urbanspoon.