Zomato loss grew to 160%, revenue increased at 84% in FY20

Covid-19 pandemic has changed the whole equation of dine-in and delivery business which has affected the food delivery players in a huge way.
  • Nusra Deputy Features Editor
Zomato

Gurgaon-based food delivery platform Zomato has reported a net loss that has increased by 160% to Rs 2,451 crore in the year ended March.While, its revenue increased 84 per cent from the preceding FY.

The food delivery major saw losses climbing from Rs 570 crore in FY19 to Rs 2,451 crore amid 48.8 per cent increase in expenses from Rs 3,109 crore to Rs 4,627 crore during the said period, according to the regulatory filings sourced from Tofler.

Also Read: Zomato closes $660m funding round, Deepinder Goyal

On the other hand, the company, backed by Alibaba’s Ant Financial, Tiger Global, and others, managed to push its revenues up from Rs 1,350 crore in FY19 to Rs 2,485 crore in FY20.

While the other businesses are gaining traction, Zomato’s primary revenue source is through Ad Sales, Online Ordering and Zomato Gold business segments.

Also, Unit economics in online ordering improved significantly with increased revenue, lower logistics cost and user discounts. The company acquired Uber Eats during the year under review, to become the market leaders in delivery business.

Covid-19 pandemic has changed the whole equation of dine-in and delivery business which has affected the food delivery players in a huge way.

May Interest: Zomato to offer takeaway service to restaurants at zero commission

“We are working on number of products to address this loss, like introducing contactless dining and delivery / takeaway products in certain geographies outside of India. The food@work business under the entity Tonguestun Food Network Private Limited (cafeteria meals business) is also impacted due to Covid-19, as large number of working people, have been working from home which has resulted in trimming down of the business in line with current market requirements. Decisions to continue in cities or not for the delivery business were also taken after analysing the market potential and profitability,” it added.

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