The delivery arm of Zomato, the online restaurant search, discovery and delivery portal, loses an average of (1.5 lakh a month.)
New Delhi: Deepinder Goyal, co-founder, said on Thursday in an investor call organised by Info Edge (which owns 47 per cent in Zomato) that they. lostt2 on every food delivery.
Zomato gets 25,000 orders a day, of which it handles about 20 per cent — that is 5,000. So, its loss is (1.5 lakh a month.)
Goyal further told investors on call that the operating cash bum had come down to $1.7 million in May from $9 million last year. He added that while 80 per cent of the delivery was handled by restaurants, it looks after the remaining 20 per cent.
“We make a negative (2 despite having outsourced deliv-ery. Our logistics partners are not able to make the unit economics work well. Restaurants are best equipped to deliver locally,” he said during the investor call.
Adding: “We are building tech and efficiency to get into the green and make last-mile logis-tics work.”
Zomato has around 70,000 restaurants listed on its platform, of which only six per cent are paid listings. Goyal said the company was growing in India at 30 per cent a year.
The company has shrunk its operations from 23 countries to The loss before tax shot up 262 per cent to 1492 crore for the financial year ended March 2016 14, having stopped in Chile, Britain, Ireland and Sri Lanka, among others. It remotely oper-ates the portals still working in these countries, as these were high burn (cash and manage-ment time) and high risk mar-kets, he said.
Asked when the whole opera-tion would break even, Goyal said with growth in revenue from advertising and the burn rate being down, he hoped to reach break-even in the nextsix to nine months. He also said they need-ed to focus more on sales than raising prices.
Earlier this year, Zomato had said the company was looking for investments of $200 million; it no longer is. “The business cor-rected well, so we dropped the idea,” said Goyal. “We have a cash balance of $35 mn and18 months of runway time.”
