Zomato Indian Food Delivery INR 4538 Crores this quarter.

Domestic food delivery business reported the highest ever gross order value (GOV) in the quarter under review, increasing by 37 percent to around INR 4,538 crore, compared to INR 3,315 crore in the previous quarter.

Zomato said its operational revenue increased by 22 percent to INR 844 crore in April-June, while net losses rose over 168 percent from the previous quarter to INR 360 crore, as the food delivery platform presented its maiden quarterly earnings as a public company on Tuesday.

While INR 806 crore of operational revenue came from India, revenue of INR 31 crore was logged from the UAE, and the balance from other markets.

Zomato said its adjusted revenue — which is a combination of revenue from operations and customer delivery charges — increased 26 percent to INR 1,160 crore in the June quarter, compared to around Rs 920 crore in the March quarter.

“Revenue growth was largely on the back of growth in our core food delivery business, which continued to grow despite the severe Covid-19 wave starting April,” said cofounder and chief executive Deepinder Goyal in the company’s filings to the Bombay Stock Exchange.

Zomato said the increase in losses is due “largely on account of non-cash Esop (employee stock ownership plan) expenses, which have increased meaningfully in Q1 of FY22 due to significant Esop grants made… pursuant to creation of a new Esop 2021 scheme.’

NEWS| Zomato’s INR 60,000 crore IPO valuation creates buzz

Zomato’s IPO is set to be open from July 14 to July 16 at a price band of Rs 72-76. The enhanced offer size is about Rs 9,375 crore. Interestingly Zomato’s valuation at IPO, at about Rs 60,000 crore, is equivalent to the market value of all the quick service restaurants (QSRs) listed on Indian bourses.

The valuation of food delivery major Zomato that’s going public through an IPO with an indicative market capitalization of around INR 60,000 crore, has been a topic of much discussion on social media with many raising an eyebrow if it’s really worth that much.

People have mixed views. For some, a tech-enabled company should be valued differently to a traditional company despite its losses. For some, the IPO is a harvest opportunity for venture capital & private equity investors to offload their liability to retail investors, while some believe Indian food tech companies will reflect valuations earned by their global peers like DoorDash to a significant investor extent.

Zomato’s IPO is set to be open from July 14 to July 16 at a price band of INR 72-76. The enhanced offer size is about INR 9,375 crore.

Interestingly Zomato’s valuation at IPO, at about Rs 60,000 crore, is equivalent to the market value of all the quick service restaurants (QSRs) listed on Indian bourses. Its value is also more than the market value of all the listed hospitality chains operating in the country. This second list includes the behemoth like Indian Hotels that run the iconic Taj chain of hotels in India and abroad, and also Oberoi Hotels.

India has half a dozen listed quick-service restaurants with a combined market value of Rs 60,712 crore and about 20 listed hospitality companies with an aggregate market capitalization of Rs 44,000 crore.

Source

Zomato 'Gold' becomes 'Pro' with nearly 50 per cent more restaurants

 Zomato has doubled down on its Gold subscription program amid the COVID-19 crisis as the food tech unicorn renamed the dining membership as Zomato Pro after signing up about 50 percent more restaurant partners.

All Zomato Gold members across 10 countries will automatically get upgraded to Zomato Pro starting 1 August 2020. Pro members will get access to exclusive delivery offers.

For More Information click below:

www.newindianexpress.com/business/2020/jun/30/zomato-gold-becomes-pro-with-nearly-50-per-cent-more-restaurants-2163408.html

Zomato to lay off 13% workforce

Online food-delivery platform Zomato on Friday said it will reduce its workforce by 13%, while also implementing a temporary pay cut of up to 50% for remaining employees as nationwide lockdown to prevent spread of COVID-19 severely affected its business.

In an email to employees, Zomato Founder & CEO Deepinder Goyal said that the workers affected by the layoffs will continue to get half of their salaries, in addition to health insurance and outplacement support, for the next six months or till they find another job, whichever is earlier

The company is also looking at making “partial or full work from home” a permanent feature to reduce real estate costs.

“Our business has been severely affected by the COVID lockdowns. A large number of restaurants have already shut down permanently, and we know that this is just the tip of the iceberg,” Mr Goyal said, adding that he expects the number of restaurants to shrink by 25-40% over the next 6-12 months.

Many people have volunteered for a 100% pay cut for at least 6 months, the company remains short of its salary reduction target.

Lower cuts are being proposed for people with lower salaries, and higher cuts (up to 50%) for people with higher salaries.This temporary reduction in pay will also be eligible for 2x ESOP grants.

 All employees who no longer have any work at Zomato, will continue to be “with us at 50% salary for the next 6 months. During this time, outside of the handover period of 1-2 weeks, we expect these folks to spend 100% of their time and energy towards looking for jobs outside of Zomato.”

Some impacted employees who are not directly on Zomato’s payroll, will get two months of severance 

“Each person leaving us will also be allowed to keep their Zomato issued laptops and phones (if any),” he said, adding, “Previously allocated ESOPs will continue to vest during this period of six months, as all these people will remain on our payroll with reduced pay.”

The company will continue to hire people in some areas, primarily in product and engineering.

Noting that the company’s highest recurring expense today outside of payroll is real estate, Mr Goyal said Zomato has over 150 offices globally, most of which are spaces for their sales and logistics teams. “Given how well we have been working from home, we have decided to make partial or full work from home a permanent feature of our lives.”

Zomato Successfully Tests Its First Meal Delivery Drone

Gurugram-based food delivery and restaurant discovery platform Zomato has taken the next-generation tech leap with its first successful attempt at food delivery via Drone.

The test, which was conducted using a hybrid drone, had a fusion of rotary wing and fixed wings on a single drone. Zomato claims that the test drone was successfully and seamlessly able to cover a distance of 5 kms, in about 10 minutes, with a peak speed of 80 kmph, carrying a payload of 5 kgs.