BENGALURU: Zomato‘s net loss increased by 160% to Rs 2,451 crore in the year ended March 2020 compared to the previous year. Revenue grew slower, at a little more than 100%, to Rs 2,363 crore. The online food delivery company plans to have an IPO this year.
Zomato’s total expenses rose by nearly 37% to Rs 4,628 crore, according to regulatory documents sourced from business intelligence platform Tofler. Among the expenses, spends for advertising and promotions rose by almost 9% to Rs 1,326 crore. In 2019-20, Zomato had acquired Uber Eats India‘s assets, which helped increase market share vis-a-vis rival Swiggy. The latest financials of Swiggy are not yet available.
In its annual report, Zomato said Covid-19 had hit its business hard with initial food order volumes going down significantly along with a huge impact on its revenue from the dine-out business. “We are working on a number of products to address this loss, like introducing contactless dining and delivery / takeaway products in certain geographies outside of India,” it said. “Business is shaping up well and the management team is focused to improve the product continuously striving to focus on customer satisfaction and ensuring to grow without compromising on profitability.”
Employee expenses jumped by nearly 33% to Rs 621 crore in fiscal 2020. But the company fired around 13% of its staff in May this year to battle the impact of the virus outbreak. So those expenses will likely come down in this fiscal.
Recently, Zomato co-founder and CEO Deepinder Goyal tweeted that sales have surpassed pre-Covid-19 levels, and the company saw record single day sales on New Year’s Eve as consumers stayed indoors amid various restrictions. Last month, Zomato closed a fund-raise of $660 million that valued it at $3.9 billion post-funding.