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20% of Zomato’s India revenues are from food ordering – Info Edge’s Bikhchandani

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Online food delivery accounts for 20% of Zomato’s revenues, Sanjeev Bikhchandani, vice chairman of Info Edge, told analysts in a call. Zomato’s online food delivery is currently live in three countries – India, Dubai and Phillippines.

In an earlier call in May with analysts, Zomato co-founder and CEO Deepinder Goyal said that the average order value stood at Rs 480 with 27% of orders with some kind of discount. Goyal added that Zomato saw daily average orders of 25,000-26,000.

For the fiscal year 2015-16, Zomato reported operational revenues of Rs 184.97 crore but an operating EBITDA loss of Rs 492.27 crore for the period.

“In the last financial year, India was 45%, UAE was 20%. The rest of it from all other countries. As of May, India and UAE are around 58%, and it is dropping in share by 2 percentage points every month, because the other markets are going much faster because they have a smaller base. That doesn’t mean that India and UAE are slowing down: they’re also growing, but on a large base,” Goyal had said in the call.

This translates to India revenues of Rs 83.23 crore and the share of food ordering in this was around Rs 16.64 crore.

Zomato charges a take rate of 8.2% for delivery for orders but for larger quick service restaurants, it stands around 6-7%. It makes around Rs 20 as a contribution margin the online order business in India. “For the 20% of orders, where we have delivery partners, we do negative Rs 2 (as contribution margin),” Goyal explained.

Cash burn reducing

Bikchandani added that Zomato has been reducing its cash burn and it is around $1.4-1.5 million a month now. In May, Goyal had mentioned that cash burn was around $1.6-1.7 million.

“As and more they get more confidence in breaking even, they have decided that they can invest more in tech, product and other things. They could break even next 3-4 months or push it to another 3-4 months depending on their confidence,” Bikchandani added.

Read more: Zomato’s unit economics for food delivery in India – Deepinder Goyal, Zomato

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    © 2008-2018 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ