Indian food tech giant Zomato saw its losses increase by as much as 161 per cent in the fiscal year 2019-2020 which ended on March 31. Compared to the previous fiscal year where its loss stood at Rs 940 cr, the food delivery company recorded a loss of Rs 2,451.17cr, according to business intelligence platform Tofler.
However, revenue from operations grew to Rs 2,336 cr just a little over 100 per cent year-on-year (YoY) basis. The company’s total expense rose nearly 40 per cent at Rs 4,627.75 cr compared to the last year where it spent Rs 3,383.56 cr.
Zomato features like online ordering, Zomato Gold, and ad sales drive the lion’s share of the company’s revenues.
The firm’s gross merchandise value (GMV) for Zomato rose to $1,496 million in FY20 from $718 million in FY19, an increase of nearly 108 per cent, the foodtech unicorn had earlier said.
“Unit economics in online ordering improved significantly with increased revenue, lower logistics costs, and user discounts,” the company said.
In FY20, the company also acquired ride-hailing firm Uber’s food delivery unit UberEats’ India business for $350 million (INR 2,559 cr), although it’s not clear whether the company has accounted for the acquisition in its expenses for the year.
