Food order aggregator and delivery startup Zomato’s Founder and Chief Executive Officer Deepinder Goyal has claimed that the company has reached the annual revenue rate of $100 million (Rs 650 crore). According to him, this has been made possible through a 40% hike in revenue recorded in just the last 2 months (January and February’ 2018).
However, the finer details on whether this kind of increase and routine revenue figures have been seen throughout the past one year or he has just calibrated the monthly sales figures to be representative of the annual figure have not been furnished by Goyal.
In Indian Rupee terms, the turnover figures let out in the public domain read Rs 332.3 crore for the financial year 2016-17 and this was a 75% over the previous year’s figure of around Rs 189 crore. The company also managed to cut down its losses considerably over this period.
There is an opinion that the new membership drive Zomato Gold has been received well and this could be one of the factors for the spurt in the revenues for the company. Having netted a base of 150,000 subscriptions in a matter of months, Zomato may be mulling an increase in the subscription fee, going ahead. The current fee structure reads Rs 299 for a quarter and Rs 999 annually. There is however a cap of 10,000 subscribers for the annual subscription.
Most of these details have also been shared by the CEO in his blog posts. He claims that sheer word of mouth promotion and referrals have made this scheme so popular.
In terms of the funding scene for Zomato, the startup raised $200 million Alipay, an affiliate of the Chinese giant Alibaba and that funding round also witnessed the startup’s valuation being taken to above the $1 billion according it the unicorn status.