Zomato has hit $100 million in annual revenue run rate as of March, last month of the current fiscal, Founder and CEO Deepinder Goyal has tweeted. Goyal added that the restaurant discovery and food delivery platform has registered 40% growth in the last two months.
Economic Times reported that the financials are reflective of all 9 countries where Zomato monetises its operations with a significant portion of the growth being contributed by UAE and India where Zomato offers its food ordering business.
It must be noted that the $100 million annualised revenue run rate is not the actual annual revenue of the firm for the current financial year, those numbers will be filed by the company at the end of this quarter. Rather the annualised revenue run rate is used to project future revenue for the year and is calculated based on the current month’s revenue. In case of Zomato that would equate to a revenue of around $8.33 million dollars in March ($8.33 million multiplied times 12 is around $100 million).
According to ET’s report, Zomato Gold and food ordering have been the major driving forces of growth for the company. A company spokesperson told ET that online food ordering accounts for 40% of the total revenue and Zomato Gold subscriptions make up about 12% of the revenue. Zomato currently clocks between 3-3.2 million orders per month for its online ordering business while it’s main rival Swiggy clocks over 4.5 mn orders per month, the report states.
Zomato had clocked $49 million in revenues as of FY17 with online ordering forming about 18% of that pie at $9 million.
Zomato Gold numbers
Zomato Gold, the paid subscription product from Zomato, which allows users to get complimentary food or drinks at around 2000 restaurants in Hyderabad, Pune, Delhi-NCR, Mumbai and Bangalore, crossed 150,000 subscribers earlier this month. This represented a growth of 477% in three months, as Zomato had about 26,000 subscribers, apparently just around seven-eight hours after its launch, as per MediaNama estimates. (Read how we estimated that here) The number of partners on Gold now stands at 2300, compared to around 1100 at the time of launch.
Goyal attributed the growth to word of mouth and referrals, as he wrote that 40% of its total sales were referral driven. In MediaNama’s previous coverage of the service, Nikhil pointed out that one part which may have contributed to the sharp growth is the fact that Zomato is offering 1 month extra to users for each referral they get, and anyone who signs up with a referral code gets 25% off.
Zomato Gold subscription was started with a launch price of Rs 299 for a quarter, and Rs 999 per year with limit of 10,000 subscribers. In the blog, Goyal said that the product pricing is 2.5x (Rs 799 for a quarter, and Rs 1899 per year), and the conversion rates on the plan page are still holding up, and that the company may again increase the price of subscription, as he wrote that “maybe there’s still a tonne of room to increase pricing“.
Management shake up and other developments
Earlier this month, co-founder Pankaj Chaddah quit the company and is now apparently moving on to try out something new. He announced his decision on Twitter. Chaddah continues to serve on the company’s board of directors. Chaddah also retains his stake of about 3.11% in the company.
Media reports suggested that the company is going to see a reshuffle in top management. Quoting a source, Business Standard reported that next senior-executive exit would be from the company’s technology team, and at least two exits are expected by end of April.
In February, Zomato raised $150 million from Alibaba’s Ant Financial. Over and above this, Ant Financial bought another 6.66% stake (around 32,629 shares) of Zomato from Info Edge for $50 million, taking the total expenditure for Ant Financial in this deal to $200 million.