Zomato, which is launching its IPO next week, reported operating revenue of Rs 1,993 crore for the year ended March, down 23.5% from Rs 2,604 crore a year ago, according to its red herring prospectus.
The deficit also came down to Rs 822 crore from Rs 2,362 crore, partly because of this. Expenditure almost halved from Rs 5,000 crore to Rs 2,608 crore.
“The food delivery business got affected in the first wave of Covid due to the fear of virus and surface transmission. The fear of surface transmission is allayed and we have placed crores of orders in the last 18 months without a single case of transmission through food delivery,” said Chief Financial Officer Akshat Goyal. Company’s average order value (aov) continues to grow – even during pandemics. it touched
Rs 395 in the fourth quarter of the last financial year, Rs 287 a year ago.
On Grocery, Goyal said that this is a huge opportunity and it is still in its initial stage. “We are actively experimenting in this area and recently invested $100 million for a minority stake in Grofers to get more exposure to that space. We are selling grocery on our platform on a pilot basis. We are in the process of launching the delivery marketplace.”
The shares of Zomato will be listed on the stock exchange on July 27. The issue price is Rs 72-76 per share. Gupta Ltd. said the company increased the offer size to Rs 9,375 crore from the already planned Rs 7,500 crore due to increased demand from investors during the roadshow. Info Edge India, one of the early backers, has halved its offer for sale from Rs 750 crore.
Zomato, which is supported by Info Edge, Alipay, Ant Financial, Tiger Global And Sequoia said it achieved positive unit economics with an average contribution margin of Rs 23 per order in the third quarter of last year, up from a negative 30.5 margin a year ago. The company said that it is earning money per order on an average. This has been made possible due to the increase in commission.
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