In part one of this Q&A with Deepinder Goyal, Founder of Zomato, he spoke about the impact of the Urbanspoon acquisition on Zomato's strategy, their key markets, how they're using their whitelabeled product strategy to garner traffic in markets where they don't have enough traffic, and the areas of focus for the company. Second part of this Q&A with Info Edge investors (and the media); some part of this conversation is paraphrased: Q: What are the profit levels between your different models of enterprise, ad based revenue and order delivery? How do they stack up in order? If you have any rough numbers to share, that'd be great. Goyal:So, the ad revenue business is the most profitable when it comes to gross profit margins. We actually do not calculate gross profit margins the way other people do, we see how much are we paying our sales force. So, for every dollar that we used to pay our sales team which goes out and sells ad space to restaurants, how many dollars do they bring back. In general, if we're spending $1 on our sales team, they're bringing $4-5 (that month alone, including commissions paid on a monthly basis, fully loaded cost like travel, reimbursement, phone calls) in terms of revenue. On a monthly basis, our sales cost, if we're paying X to our sales people, they bring in 4-5X in revenues. And that's a 75-80% gross margin. In the longer term, our margins should easily fall between 40-50% odd. I…
