Zomato is one of the biggest food tech companies in India. It started out as the restaurant discovery platform just in Delhi. The intentions were not to go big but just provide the employees of certain companies, menus of the restaurant they want to visit. The idea was great and this turned into a website where people could check the restaurant out and its menus. A couple of years later, there was an app and you could rate the restaurant so that people would know how the taste is.
That being said, the company has come a long way from then. It has traveled all around the country and is now entering tier 2 and 3 cities with its food delivery cum restaurant finder application. It recently launched in Amravati in Maharashtra and is looking to expand to another tier 3 city named Parbhani. The company is looking to mark its entry into these markets as the internet is available almost everywhere in these cities.
The company has been around for over a decade now and it has change faces multiple times. There are many services the app offers. If you are a gold member of Zomato, you get the preference for booking a table with offers such as free food on certain orders and even drinks. These services are extremely popular in metropolitan cities.
There are people working towards making the company better as it is lagging behind in the food delivery market. Its competitor Swiggy has managed to gain the majority of market share in many cities. The only factor Zomato lacks in is the trust factor amongst the customers. However, the trust seems to be gained back as the revenue of the company is up by almost three times from last year.
Zomato is looking strong when it comes to the numbers. The revenue in 2018 stood at around $68 million while the revenue this year has risen to $206 million. The three-fold growth is privy to its frenzy of expansions. The company has been sending teams right left and center of the country and entering the smaller and niche markets in India.
The annual report of Zomato also revealed that the company’s total cost which went up by almost six times. In 2018, the total cost was around $80 million while in 2019 it had climbed a mountain to reach $500 million. The company is looking to expand even further as the revenue run rate stands at a handsome $350 million.
The restaurant is present in more than 10 thousand cities across the globe while it has partnered with almost 1.4 million restaurants. There are around 70 million active users on Zomato. The company also got 5 million user registrations and 11 million app registrations in the past year or so. This growth is brilliant, although Swiggy still leads the marketplace.