Zomato’s revenue from India Operations Doubles, reaches USD13.5 million

India: India online food ordering and delivery major, Zomato, has seen an increase its revenue from USD7.1 million in 2014-15 to USD13.5 million in 2015-16. Company has been successful operating in the different countries of the world. India accounted for 47.30% of Zomato’s overall revenue which stood USD28.5 million. In terms of bifurcation of revenue, segment wise, online advertising dominated the pie with a share of 91.4% followed by online ordering.

In 2015, Zomato spent approximately USD0.11 million in marketing activities for India region and the company also achieved operational break-even for India, UAE, Lebanon, Qatar, the Philippines and Indonesia markets. In the same year company entered the Americas market, with USD52 million acquisition of Urbanspoon. 

According to a recent published report by TechSci Research “India Foodtech Market By Operation Type (Food Aggregators & Restaurant Based), By Source of Order (Web Vs Mobile App), By Payment Method (Cash on Delivery, Mobile Wallet, etc.), Competition Forecast and Opportunities, 2011 – 2021”, the foodtech market in India is projected to grow at a CAGR of over 12% during 2016 - 2021. Over the last couple of years, the country’s foodtech market has been witnessing huge fund inflows from domestic as well as foreign investors. On the basis of operation type, the market has been segmented into two categories, namely, food aggregators and restaurant based. Among these categories, restaurant based segment dominated the overall market in 2015, and the segment is anticipated to maintain its dominance over the next five years as well, owing to consumer loyalty and frequent cashbacks/discounts offered by the companies. In 2015, Cash on Delivery was the most preferred mode of payment among Indian consumers. Moreover, web based source of ordering dominated the India foodtech market in 2015 as it offers seamless customer experience in terms of ease of ordering, choosing alternate payment options and order tracking.

According to TechSci Research, the Company has been successful in generating revenue from advertising subscription model and in order to boost up its revenue from online ordering model, the company should invest more on marketing activities related to its online ordering business model. Apart from this, the company should also focus on Tier-II and Tier-III cities in India where the penetration of e-commerce is increasing day by day. Most of the companies operating in the Online Food Ordering and Delivery segment in India does not focus on Post Delivery feedback from the customers. Providing a platform where customer can provide its feedback will help the company to assess the customer’s response which will ultimately help them to increase their customer base.