Zomato CEO says HSBC’s halved valuation report is half-baked, cites figures and data to support his claim
Advertisement
Advertisement
As reported earlier, HSBC’s brokerage arm has halved Zomato’s valuation, which now stands at $500 million, citing lack of profitable markets.Zomato’s CEO
"These assumptions and statements in the HSBC report make it look like they're coming from someone who doesn't - and hasn't bothered to - understand the space well," it says.
He added that in India, Zomato holds a large share of its operational market, citing that it drove over 50% of business to some of the biggest Indian restaurants, with an 8% growth and 33,000 online orders. He added that Zomato will become profitable when the number crosses an average of 40,000 orders a day.
Goyal's letter also talls about its international business, in markets like the Philippines, Australia and Canada, while not forgetting about the company's burn rate, which has come down 70% percent from its peak. He has clearly stated that “Fifteen out of the eighteen countries where we are traffic leaders are yet to see serious monetisation efforts,” while also hinting at the huge scope for improvement in the field.
Advertisement
He ended the note by asking his team to get back to work, and focus on execution.
You can read more from his blog here.
Image source
Advertisement
- I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
- One of the world's only 5-star airlines seems to be considering asking business-class passengers to bring their own cutlery
- Vodafone Idea FPO allotment – How to check allotment, GMP and more
- Agri exports fall 9% to $43.7 bn during Apr-Feb 2024 due to global, domestic factors
- Best flower valleys to visit in India in 2024
- Nifty sees modest gain, Sensex inches higher; Market sentiment remains cautious amid global developments
- Heatwave: Political parties focusing more on evening meetings, small gatherings
- 9 Most beautiful waterfalls to visit in India in 2024