Online Food ordering and Restaurant listing service Zomato has hit the break even in India and other six markets including the markets in middle east- UAE (United Arab Emirates), Qatar and Lebanon. It’s a great news when food delivery industry is in heavy strain.
Before a few days, World food delivery giant Food Panda tried to sell off its Indian wing but alas! there was no one to pick the offer!
Co Founder of Zomato Pankaj Chaddah Said-
“We can now channelise the profits to grow faster and compete harder in countries where we see significant competition. It’s a great thing that we don’t fully depend on external funds to fuel all the experiments and initiatives that we have undertaken in India and elsewhere. This is a great confidence booster for us and now is the time to double down on growth, and what I call defending our turf in the markets we are strong in.”
All the food tech companies including Tiny Owl and Food Panda sacked hundreds of people in last year. Zomato also had done that as their funds were drying up and moreover their target were not meeting. TinyOwl stopped operation in four cities where they had expanded and got themselves limited into Mumbai again.
Deepinder Goyal, Founder & CEO of Zomato said,
“We have more than doubled our revenue year-on-year for the last few years, and we are going to post some great growth numbers this year as well. We are profitable in 6 of the 18 markets we are the market leaders in. This proves our long-lasting conviction in our business and the fact that we are on road to create the first truly global consumer internet company out of India”.
It’s a motivating lesson for others companies. Zomato was under loss for three years. They expanded their network steadily and included one after another feature.
Now, 22% of Zomato’s app traffic and 35% of Zomato’s total gross revenue comes from India alone. Zomato’s India business has grown over 10 million monthly unique visitors in app and web both. Recently, Zomato has made their foot print in the transactions business and now they are serving over 15,000 orders a day at an average price of Rs 575 per order.