Gurugram based foodtech major Zomato on Friday disclosed that its revenue earnings for the financial year ended March 2020. The Ant Financial backed company said that its revenue grew by 105% to reach $394 Mn and assured its investors that the company is well on its way to improve its monthly revenue by 60% in July amid the COVID-19 challenge.
The company’s loss for FY20 stood at $293 Mn in the last financial year with losses accelerating by just 5-7% on yearly basis. The company further claimed on its official blog post that its monthly burn rate will be contained under $1 Mn and its revenue land at ~60% of pre-COVID peaks ($23m per month).
“Moving our business towards profitability was a core focus for us in FY20 and we made significant progress along that journey,” Zomato’s founder and CEO Deepinder Goyal said in the blog post.
The online foodtech major expressed confidence that its revenue is on its way to register land at ~60% of pre-COVID peaks ($23m per month) while it will continue to maintain tight control on costs and profitability.
As for the GMV is concerned, its food delivery GMV in FY20 grew by 108% as compared to FY19 to reach 1,496 Mn. The company said that its GMV has recovered to 60% of pre-COVID levels.
Speaking about the massive economic challenge in the wake of coronavirus crises, Goyal said “Tough times will happen when they have to. The only way to weather what the world throws at us is by following the old adage – ‘tough times don’t last, tough people do.’”
Foodtech and restaurant sectors was among the worst-hit sectors by the Covid-19 crises, with the global pandemic crises eroding almost 80-90% business of Swiggy and Zomato.