Zomato revenue analysis

Accounts Project
On
Revenue Model

COMPANY BREIFING
• Zomato is a restaurant search and discovery service
founded in 2008 by Deepinder Goyal and Pankaj Chaddah,
both graduates from IIT DELHI.
• It is headquartered in Gurgaon and operates in 23
countries, including India.
• It features restaurant information, scanned menus and
photos sourced by Local Street teams, as well as user
reviews and ratings for more than for 42,000 restaurants
in 36 cities across India.
• The company also provides cashless payment, online
ordering, table reservation and point-of-sale systems.
• Zomato has its official website and has application for ios,
android, windows and blackberry devices.
• The website currently has alexa ranking – Global: 530 and
in India – 77.
• The company’s official website has a monthly visit of 90
Million users.
• Zomato’s revenue for the financial year 2015-16 was
184.97 crore.

HOW IT STARTED??
• After graduating Deepinder and Pankaj started working in Bain and
company as a management consultant.
• It was in the cafeteria of Bain and Company that they conceived the idea
of an online restaurant information service after seeing the demand for
menu cards among his colleagues.
• They left Bain in 2008 to start “FOODIEBAY”
• FOODIEBAY was launched in 2008 in the apartment of Deepinder Goyal,
which was later in 2010 was renamed as “ZOMATO”.
• Both IIT DELHI alumni started to scan restaurant menus and upload it on
an intranet website for Bain employees. The website saw a lot of traffic
and was launched publicly in 2008.
• The website began by listing restaurants in Delhi NCR, and quickly
expanded to Kolkata and then Mumbai.
• Soon after launching, Foodiebay received the Seed funding of ₹4.7 crore
(US$1 million) from Info Edge (India), the parent company of the
Naukri.com group.

Funds & Sources
Date Amount/Round Lead Investor Investors
Sept, 2015 $60M / Series G Temasek Holdings
Vy Capital
2
Apr, 2015 $50M/Series F Info Edge
Vy Capital
3
Nov, 2014 $60M/ Series E Info Edge
Vy Capital
3
Nov, 2013 $37 M/ Series D Sequoia Capital 2
Feb, 2013 $37 M/ Series D Sequoia Capital 1
Sept, 2012 $2.3M / Series B Info Edge 1
Sept, 2011 $3.5M / Series A Info Edge 1
Aug, 2010 $1M / Seed Info Edge 1

Revenue Model Of Zomato
Sources of
revenue
Restaurant
advertising
72% of total
revenue
Event
advertising
4% of total
revenue
Event ticket
sale
12% of total
revenue
Consulting
services
3% of total
revenue
Online food
ordering
2% of total
revenue
Subscription
7% of total
revenue

Restaurant Advertising
This is when it places banner ads for restaurants on the website. This
accounts for 72% of Zomato's revenue. When you search
restaurants/cuisines/locality and get results, the results will show the list
of restaurants along with a separate list of restaurants tagged as
"Sponsored". These sponsored restaurants are advertisements and
Zomato charges these restaurants for showing their name in results.

Event Advertising
This is when specific events are promoted on Zomato -
this revenue primarily comes from restaurant based
advertisers. Typically, tickets for these events are also
sold on Zomato. This accounts for 4% of Zomato’s
revenue.

Event Ticket Sale
Commissions on ticket sales through Zomato;
primarily for restaurant venues; accounts for 12% of
its revenue. It makes money by other ways like
booking event tickets. Zomato takes a commission by
selling tickets for various events.

Consulting Services
Restaurant chains ask for advice on where to open
their next outlet/branch. Zomato dig through
terabytes of data to tell them where the demand lies
and what's the competition like. It amounts to 3% of
total revenue.

Subscription
Zomato charges merchants who want premium
dashboard access which allows them to edit and
change their listing as per their convenience. It
amounts to 7% of total revenue.

Online Food Ordering
This is only limited to the online ordering platform of
ZOMATO which was introduced lately in 2015.
Zomato takes a cut out of the order total from the
restaurant. These commissions typically range from
5-20% of the order value. It amounts to 2% of total
revenue.
0
100
200
300
400
500
600
700
800
VALUE PER
ORDER
Column1
Column2

Revenue Analysis
Online restaurant discovery and food ordering
service Zomato's losses are shooting up
significantly as it invests heavily on online food
delivery services. Zomato's loss before tax has
shot up by 262% to Rs 492.3 crore for the
financial year ended March 31, 2016, from Rs 136
crore loss in the previous year, which was
disclosed in Info Edge financials.Zomato’s
operating revenues has nearly doubled to Rs
184.97 crore for the year from Rs 96.7 crore in
the previous year.

REVENUE IN INDIA
-250
-200
-150
-100
-50
0
50
100
REVENUE PROFIT/LOSS 14-15
15-16

OVERALL REVENUE
-500
-400
-300
-200
-100
0
100
200
REVENUE PROFIT/LOSS 14-15
15-16

Companies Acquired by Zomato
Date Acquired Amount
Apr 22, 2015 NexTable, Inc. Cash & Stock
Jan 29, 2015 Mekanist Cash
Jan 12, 2015 Urbanspoon $55M (terms
undisclosed)
Dec 18, 2014 Cibando Unknown
Sep 23, 2014 gastronauci.pl Unknown
Aug 22, 2014 Lunchtime Unknown
Aug 22, 2014 Obedovat Unknown
Jul 1, 2014 Menu Mania Unknown

Zomato revenue analysis

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Zomato revenue analysis

Similar to Zomato revenue analysis (20)

More from ICFAI Business School

More from ICFAI Business School (20)

Recently uploaded

Recently uploaded (20)

Zomato revenue analysis