Industry News

Zomato to double its revenue in current fiscal

Zomato which is one of the leading company that lists restaurant menus and captures consumer ratings, has now entered the online ordering business is planning to double its revenue by Mar 2016.

The present valuation of the company is USD1 Billion. The company is expected to become India’s largest food ordering platform into months by surpassing the earlier online food ordering platforms such as Foodpanda and Swiggy.

The owner of the company claimed that he expects the business to grow by four-fold to 50,000 orders a day with an average order valued at INR 550. The company generates 95% of its revenue from search and the rest from online food ordering.

The company plans to hire more people by year end and also expressed an interest in acquiring potential targets. The company claims to have received USD223 Million funding from investors such as Edge, Sequoia India, Vy Capital and Temasek and is not seeking more investments.

The company has been expanding its foreign base by aggressively acquiring restaurant search companies in New Zealand, Poland, Czech Republic, Slovakia, Turkey and Italy.

According to a recent report published by TechSci Research India E-Commerce Market Forecast and Opportunities, 2020, the country’s e-commerce market is expected to grow at a CAGR of over 36% during 2015 – 2020. India’s workforce majorly comprises of young consumers who have less time for going out and shopping. Such a scenario creates humongous potential for online shopping in a market as huge as India. The Ecommerce market is said to further grow with the users becoming tech savvy and changing lifestyles.

The companies are expected to move into revenue generating models soon, Instead of advertising without any major profits.