Zomato’s revenue jumps by 225% and number of gold restaurants grew even during the logout movement
Zomatohas announced a 225% jump in revenue to touch $205 million in the first half of FY2020.
- Its monthly burn rate is down to 60% from what it was 6 months ago.
- Its active gold members have also gone up by 180%.
The food aggregator said that it cut its losses as its monthly burn rate is down to 60% from what it was 6 months ago.
Zomato has also said that its orders have gone up by 290% as compared to first half of FY19. Its customers are placing over three million orders in a month.
“Our order volumes in top 15 cities have doubled in the last 12 months; while the remaining cities already contribute 35% to our order volumes,” said the company in a statement.
Its active gold members have also gone up by 180%.
Interestingly, Zomato’s monthly active restaurants have gone up by 177% in H1 FY2020, as compared to H1 FY2019. The number of restaurant listings globally on Zomato also grew from 1.2 million in September 2018 to 1.5 million in September 2019.
This is in spite of Zomato being at the centre of a massive logout event in the last few months.
Zomato was caught in the throes of a very public controversy thanks to its deep discounting programmes like Zomato Gold and infinity dining. Some of its offer provide consumers with offers like 1+1 on food and 2+2 on drinks.
The National Restaurant Association of India (NRAI) launched a ‘logout’ movement last month claiming that the business practices of aggregators are unethical. Hundreds of restaurants delisting from the app, as a part of the movement.
“At the start of the ‘logout’ campaign, we had over 6,100 restaurants in India on Zomato Gold (for Dining Out); as of today, we have over 6,300 restaurants in India on Gold (for Dining Out),” said the company.