Zomato revenue analysis
-
Upload
ibsggn2016 -
Category
Education
-
view
160 -
download
4
Transcript of 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 & SourcesDate 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 2Feb, 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.
DELHI N
CR
KOLKATA
MUMBAIPUNE
BENGLURU
CHENNAI0
100200300400500600700800
VALUE PER ORDERColumn1Column2
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
REVENUE PROFIT/LOSS
-250
-200
-150
-100
-50
0
50
100
14-1515-16
OVERALL REVENUE
REVENUE PROFIT/LOSS
-500
-400
-300
-200
-100
0
100
200
14-1515-16
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
THANK YOU