Zomato has reported an EBIDTA loss of Rs 136 crore for the 12 month period ended 31st March 2015 (FY15), up 228.6% year on year from Rs 41.39 crore loss reported in FY14. The online restaurant guide, and now food ordering service, generated total operating revenue of Rs 96.7 crore in FY15, more than three times the Rs 30.6 crore operating revenue generated in FY14.
Info Edge has so far invested Rs 483.3 crore in Zomato and holds a 50% stake in the Gurgaon headquartered company. This includes:
– $24.8 million (Rs 155 crore) out of $50 million in April 2015.
– Rs 185 crore out of $60 million (around Rs 370 crore), co-led by new investor Vy Capital and with participation from Sequoia Capital in November 2014.
– Rs 57 crore out of Rs 227.6 crore, along with Sequoia Capital, in November 2013.
– Rs 55 crore in February 2013.
– Rs 12.86 crore in September 2012.
– Rs 13.5 crore in September 2011.
– Rs 4.7 crore in 2010.
Note that Info Edge founder and vice chairman Sanjeev Bikhchandani had said that they’ll retain their 50% stake in Zomato even if the valuation is high few months or few years down the line, during the company’s Q2-FY15 earnings conference call. Bikhchandani had also said that Zomato doesn’t have a loss or EBITDA targets or profit targets at the moment. He added that (at the time) Zomato had been primarily operating on two fronts – one was to gain traffic leadership in as many cities as possible, and the second was to figure out how fast they can push these markets into monetization and then profits.
Readers will remember that Zomato had earlier said that it broke even at an EBITDA level in the Indian market during the quarter ending December 31, 2012, and in Dubai in the following quarter.
Zomato has charted an aggressive international expansion: The company acquired US-based restaurant reservations and table-management platform NexTable in April, had acquired IAC’s Urbanspoon in an all-cash transaction for $52 million to enter the crucial US market in January, and acquired the Turkish restaurant search service Mekanist, also in January. In 2014, Zomato had acquired Italian restaurant discovery service Cibando in December, Polish restaurant search service Gastronauci in September, Czech Republic’s restaurant guide Lunchtime.cz and Slovakia’s restaurant guide Obedovat.sk for a combined amount of $3.25 million in August, and New Zealand-based restaurant search service MenuMania in July.
The company has also been quite aggressive with its International rollout, launching its operations in several new markets, with the recent ones being Ireland’s Dublin and Lebanon’s Beirut in November and Canada in October. Zomato is now present in 22 countries, including India.
Given that earlier this year, Zomato CEO Deepinder Goyal had said that they won’t be looking to launch in any new market for the next 6-9 months and instead focus on ensuring that they consolidate in the markets they’re present in, one can expected EBIDTA to improve in the current fiscal year. He had also mentioned that every city/market Zomato is operational in “should be able to get to a profitable state in two to four years time (from the time of launch) given the level of competition in that particular market.”
(Updates: edited to fix a factual inaccuracy)