Food delivery major Zomato in its regulatory filing reported its revenue for the financial year 2019-20 grew to INR 2,486 crore (USD 340 million) on a loss that quadrupled from a year earlier to INR 2,451 crore.
Zomato’s total expenses also ballooned to INR 4,628 crore (USD 633 million), a jump of 49% from INR 3,109 crore reported in the previous financial year, according to the data sourced by business information platform Tofler.
“Covid-19 pandemic…brought down the order volumes significantly and also caused huge reduction in dine out revenue. We are working on a number of products to address this loss,” Zomato said in its filings with the Ministry of Corporate Affairs.
The company that plans to file for an initial public offering in 2021, announced in December that it has raised USD 660 million at a post-money valuation of USD 3.9 billion. Its competitor Swiggy, was valued at USD 3.6 billion after raising USD 43 million in April.
In a series of tweets, Zomato’s co-founder, Deepinder Goyal, said, “ten new investors are joining us in our journey. This list includes Tiger Global, Kora, Luxor, Fidelity (FMR), D1 Capital, Baillie Gifford, Mirae, and Steadview.”
In September last year, as a part of its report on how COVID-19 affected the food delivery sector and specifically Zomato, Goyal said the food delivery industry has started to show strong recovery signs. “It continues to grow back steadily to pre-COVID levels, with the overall sector clocking ~85%+ of pre-COVID GMV (Gross Merchandise Value), up from ~75%+ last month.”
While Zomato’s gross merchandise value (GMV) of its food delivery business has reached 110% of the pre-COVID-19 number in September, the company said there are still millions of customers who haven’t yet ordered since the beginning of the lockdown.