- November 14, 2019 / 3 min readThis amount is a significant reduction of around 44% from Zomato's $32 million March spends.
Zomato's biggest shareholder, Info Edge has announced that the food delivery and restaurant recommendation company has over halved its cash burn to $20 million. It also focused on improving margins and lowering its cost of delivery.
This amount is a significant reduction of around 44% from Zomato's $32 million March spends. It was managed despite the company expanding operations across 500 more Indian cities.
Sanjeev Bikhchandani, Executive Vice Chairman of Info Edge, said, “In March, the burn was $45 million, and now (in October), it is $20 million. They have a clear agenda to keep cutting burn, while still growing orders.”
Info Edge holds a shade over 26% in the Gurugram-based company, which was valued at $3.6 billion by HSBC Global Research in March earlier this year.
“When you grow very fast and focus on top-line growth, very often you don't keep an eye on the cost of growth. So a number of cost inefficiencies creep in. Now they are solving for that. For example, they are cutting discounts and marketing on the bottom end,” Bikhchandani stated.
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