Gurgaon based Zomato’s losses have shot up to Rs 492.3 crore for the financial which year ended in March 31, 2016, according to the company’s lead investor InfoEdge. In the previous year, the company witnessed a loss of Rs 136 crore.
But, the company attained operating revenues of Rs 184.97 crore which increased from Rs 96.7 crore in the previous year.
Zomato had earlier claimed that it has achieved operational break even in six countries including India, the UAE, Lebanon, Qatar, the Philippines and Indonesia.
The online restaurant discovery platform has been investing in delivery services with the intent to expand and overcome the tough competition in the food tech segment. But, recently its valuation had been marked down at $500 million by HSBC which was strongly disagreed by InfoEdge and Zomato.
Clarifying the mark down, Deepinder Goyal had stated,
We already are profitable in the order business at a unit economics level, and the overall online ordering business will hit profitability when we get to an average of 40,000 orders a day. We should get there in the next 3-6 months. Also, there isn’t any food delivery company in the world which owns its last mile logistics fleet, operates at scale, and is profitable.