Zomato recorded 91% increase in revenues to Rs. 1,850 million in FY2016. However, given the investments, the EBITDA level loss was Rs. 4410 million (up from Rs. 1360 mn in FY15).
Zomato: What Lies Ahead
The company has now decided to focus on only 14 countries, while managing operations on the others efficiently from india.
Both, the trend in increased revenue growth and reduced cash burn is in the right direction – Q4, fy2016 revenues was a third of annual revenues, while Q4, fy2016 cash burn was only 15% of annual cash burn.
Zomato In Numbers
The business recorded around 71 million sessions in March, 2016 across web and mobile of which around 70% sessions through mobile (web and app). today, it has a database of 1.1 mn restaurants across the world.
Also, as a cost reduction measure, today, every market apart from these 14 countries is being managed out of india remotely. As a result of these initiatives, the brand has managed to cut costs drastically.
The operating burn rate, which had peaked at US$9 million per month during the first quarter of FY2016, had reduced to around US$1.6 million in May 2016. In the second half of FY2016, Zomato managed to double its revenues while actually bringing down costs and exposure to high risk, high burn areas
Zomato : Delivery Business Is Delivering
Zomato's delivery business is almost a year old. The india delivery business is currently about 20% of revenues in india and the service is profitable. [data via Infoedge report].