Online food delivery company Zomato touched about Rs 481 crore (US $74 million) in revenues for financial year 2018 (FY18), CEO Deepinder Goyal said in a blog post.
While Goyal did not reveal profit or loss numbers, he said that operating cash burn for the year fell to $11 million from last year’s $15 million. The company hit EBITDA break-even globally across all our business, and Goyal maintained that the business can be profitable.
In FY18, food ordering brought in nearly 30% of Zomato’s revenue, with the share increasing from close to 18% in FY17. In March 2018, food delivery in India grew by 48% in terms of order volume over the previous month and revenue-wise by 55%. Its food ordering service is functional in 15 Indian cities and 5 cities in the Middle East.
In terms of usage, the company said it had nearly 5.5 million monthly food orders in March 2018. Subscription-based Zomato Gold and Zomato Treats programme together had have over 280,000 active user subscribers. Zomato Gold, which was launched in November 2017, currently contributes nearly 12% to Zomato’s monthly revenue. In MediaNama’s previous coverage of the new service, Nikhil pointed out that one reason for 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 had recently announced that it has an annualized revenue run rate of $100 million. The annualised revenue run rate is used to project future revenue for the year and is calculated based on the current month’s (March) revenue.
Goyal said that Zomato’s advertising business grew slowly last year for “lack of focus”. Its ads revenue for this financial year grew by 20% year-on-year and nearly 15,000 restaurants availed its ad service. Goyal added that the company has added new products in its ad mix. Notably, the number of people in our ad sales team is down 20% since last year.