Zomato has recorded revenue of $49mn in FY17, 80% growth over the last year. Majority of this is being driven by the food ordering business.
Zomato has also reduced its losses – the annual operating burn is down from $64m in FY ‘16 to $12m in FY’17.
Right now, the average monthly cash burn for the period of December 2016 – March 2017 is a little less than $250k globally, down from $4.2m last March; and we’re well on our way to hit profitability.
Online ordering brought in $9mn revenue (FYI: Swiggy recorded revenue of INR 23.59 crores against a loss of 137 crores in FY 15-16).
The company has also redesigned its ad serving model – which led to growth in revenue to $38mn!
For starters, we stopped accepting advertising from low rated restaurants, so that our users only see the best that’s out there. The new product provided smarter targeting, simpler interface and greater visibility to our well rated advertisers. We rolled this out globally by September 2016 and helped our merchants realise a ~3x increase in value from advertising on Zomato. Our ad sales revenue grew to ~$38m in FY17 (source).
What’s Zomato’s secret sauce?
Watch this chat with Deepinder Goyal, Zomato cofounder and CEO on lessons learned building Zomato.
Recommended Read : Why Zomato runs ads on porn sites.