Zomato Media Pvt Ltd. is happy to share its success with the consumers who made it possible. This advertisement and food delivery service providing company recently shared that its revenue rose by 80% in the fiscal year 2017. The results were compared with the last fiscal year results when the market reputation of Zomato was seriously affecting its business.
In a recent blog uploaded by Chief operating officer of Zomato, Surobhi Das says the company had to face the drop of cash burn to $12 million from previous years’ $64 million.
She further mentioned that although the company attained two times revenue growth in the fiscal year 2016 as compared to the fiscal year 2015, the year 2016 yet wasn’t that good for the Zomato. In the FY16, the rate of cash burn was on a higher note and with this, the company was expected to consolidate their operations at the International level as well.
The unfavorable wave of FY16 completely eroded the value of Zomato. The dark period came when HSBC Securities and Capital Markets of India Pvt. Ltd reduced the value of Zomato to almost 50% that is $500 million. Despite this, Zomato managed to rise to $60 million by September 2015. Surprisingly, the overall growth of this company since its inception is worth considering. It rose to about $225 from the year 2008 when it started its operations for the first time.
Zomato needs to give something unique and very different from its competitors if it really wants to succeed in the online food delivery business. To develop itself into a profitable business, it needs to think differently. This clearly means that Zomato should raise funds and invest in other ventures in order to improve this advertising and food delivery business.
As of now, Zomato is fully operational in 23 countries. This is really a remarkable count to mention Zomato’s name amongst the Indian startups that too with and International presence.
Zomato reduced cash burn to $250,000/month between December 2016 and March 2017 from $4.2 million/month in March 2016.
The core business of this company was advertising after which it started food delivery as well. Most of the revenue of this company come from advertising only.
Want to be a guest author? Register Here to share your business knowledge with our readers.