Launched in 2010, Zomato’s technology platform connects customers, restaurant partners and delivery partners, serving their multiple needs. Customers use the platform to search and discover restaurants, read and write customer generated reviews and view and upload photos, order food delivery, book a table and make payments while dining-out at restaurants. On the other hand, Zomato provides restaurant partners with industry-specific marketing tools which enable them to engage and acquire customers to grow their business while also providing a reliable and efficient last mile delivery service. It also operate a one-stop procurement solution, Hyperpure, which supplies high quality ingredients and kitchen products to restaurant partners. Zomato also provide its delivery partners with transparent and flexible earning opportunities.
Segment wise performance from Zomato’s Annual Report FY 2020
1) India Food Delivery Service
FY20 was a defining year for food delivery in India. While FY19 saw hyper-competition between 4 well-funded food delivery players, FY20 ended with a two player market structure. Zomato’s FY20 India Food Delivery GMV grew by 108% from $718m in 2019 to $1496m in 2020. Zomato acquired Uber Eats India business in January 2020 which helped propel it to market leadership in this hotly contested space. The transition of users and merchants from Uber Eats India to Zomato was swift, and so well coordinated by both the teams that we were able to transfer and retain 97% of the combined GMV on the Zomato app.
The unit economics of the food delivery business has improved consistently over the last 18 months. In Q1 FY20, zomato used to make a contribution margin of –₹47 per order; in Q1 FY21, it made a contribution margin of +₹27 per order. Over time, it expects contribution margin per order to normalise between +₹15-20 per order.
2) Dining Out
Zomato’s dining out business grew steadily in spite of headwinds (e.g. logout campaign against Zomato Gold by restaurants in India) with significant gains in EBITDA margins across India and international markets in FY20. Dining Out Revenue grew from $46.5m in 2019 to $56.1m 2020 and EBITDA margins improved from 32% to 43% during the corresponding periods. Zomato Gold paid members Increased from 1 million to 1.7 million
3) B2B Supplies (Hyperpure)
Hyperpure is growing strongly, and zomato believes that they have early indications of a strong productmarket fit. Until now, it has only been serving Delhi and Bangalore with Hyperpure. They have covered a lot of ground in the last two years, and are now expanding rapidly into new cities. Hyperpure Revenue grew from $1.8m in 2019 to $14.7m in 2020. Number of restaurants availing these services grew from 486 in 2019 to 2256 in 2020.
|126||49||Zomato Limited||Info Edge (India) Limited||1244029200||0||2021-04-28|
|127||49||Zomato Limited||Uber B.V.||612199100||0||2021-04-28|
|128||49||Zomato Limited||Alipay Singapore Holding Pte. Ltd.||558947500||0||2021-04-28|
|129||49||Zomato Limited||Antfin Singapore Holding Pte. Ltd.||550250900||0||2021-04-28|
Revenue & Margins
Sources of funds
Application of funds
|Profit and Loss Account (₹ in Crores)||2020||2019||2018|
|Revenue from Operations||2604.74||2696||1312.59||1128.3||466.02||417|
|Cost of Operations||108.92||3109.2||16.59||1718.4||0||5.5|
|EPS (Basic) in ₹||-34121.1||-383864||-16027.3||-231513||-2243.76||-37713|
|EPS (Diluted) in ₹||-34121.1||-383864||-16027.3||-231513||-2243.76||-37713|
|Dividend Per Share (in ₹)||0||0||0||0||0||0|
|Balance Sheet (₹ in Crores)||2020||2019||2018|
|Long Term Borrowings||1.47||78.7||1.31||0||1.33||0|
|Short Term Borrowings||0||10.1||0||0||0||14.1|
|Cash Bank Balance||359.88||583||238.69||289.4||208.07||119.9|
|Cash Flow Statement (₹ in Crores)||2020||2019||2018|
|Cash flow from operating Activities||-2143.62||-3841.4||-1742.66||-2346.5||-69.34||-61.67|
|Cash flow from Investing Activities||1735.22||3226.4||-1273.45||-4625.3||-820.62||-895.26|
|Cash flow from Financing Activities||358.9||848.6||3129.45||7067.5||941.31||968.99|
|Price Multiples as on 2021-05-08||Zomato||Swiggy|
|Face Value Per Share||1||1|
|Dividend Yield||0 %||0 %|