Zomato Food Startup Is India’s First E-commerce Unicorn Heading Towards Profitability
‘Zomato’ India’s biggest restaurant search and food delivery startup, early this week has declared that it has risen up in various big markets including India and will definitely hit profitable by mid of 2016.
As soon as it happens , Zomato will become the first Indian e-commerce unicorn to become profitable, it will be a remarkable milestone in a market where Indian startups are finding it quite a challenging task to attract investors for a subsequent round as none of them are near to profitability. The Gurgaon, New Delhi Based Zomato is estimated at just over $ 1 billion and its backers include Sequioa Capital, Singapore governments Temasek Holdings and Indian ecommerce player, Ingo Edge.
“We don’t need funding to keep our lights on,” said Deepinder Goyal , 33, founder and CEO of Zomato whose tagline is “Never have a bad meal.”
“Our unwavering focus is on making money. The bulk of our revenues comes from advertising and we have doubled our ad revenues in the last four months while keeping costs stable,” said Goyal, a former Bain & Co executive who set up Zomato as a restaurant search service in 2008 by scanning and putting restaurant menus online. Last year, Zomato came into the list of the food delivery business and table bookings.
Zomato said on Monday that it hit operational break-even in its biggest market India, as well as the UAE, Indonesia and three other Asian markets. Goyal said Zomato’s break-even has come from running a very tight ship. “We are not hiring for the moment, and we are keeping tabs on every little bit of spending we do.” He said Zomato is looking to double its monthly revenues in the next six months.