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Zomato reports EBITDA losses of Rs 492 Cr; revenues of Rs 185 Cr in FY16

Online restaurant discovery and food ordering service Zomato has reported operational revenues of Rs 184.97 crore for the fiscal year 2015-16, Info Edge's financials showed. In FY 15, Zomato had reported revenues of Rs 96.7 crore, a growth of 91.28%. Info Edge which is a majority shareholder in Zomato with 47% segmented the revenues from the company under the head 'Online restaurant discovery'. However, Zomato reported an operating EBITDA loss of Rs 492.27 crore for the period. In contrast, the company reported an operating EBITDA loss of Rs 136 crore last year. Interestingly in February, Zomato announced that it is profitable in its high priority markets: India, Philippines, Indonesia and UAE, Lebanon and Qatar in the Middle East. At the time, the company said it would channelise the profits to grow in countries where it sees competition, and use it for experiments and initiatives in India and outside of it. Note that the company had broken even in India in July 2013, when it was operational in 14 cities in India. HSBC halves Zomato's valuation Earlier this month, Zomato was valued at $500 million, a reduction of 50% from its current $1 billion valuation, by HSBC Securities and Capital Markets. In the research note, HSBC raised concerns about Zomato’s advertising-heavy business model, growing competition and businesses abroad. The report also added that Zomato should instead develop a sustainable delivery business.In a blog post, Zomato co-founder Deepinder Goyal countered the report on several points. More on that here. Info Edge's investment in Zomato Info Edge has…

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