Founder of Zomato Deepinder Goyal on its Growth, Zomato Gold, Food delivery and its Expansion – Zomato turns 11

Founder of zomato

Zomato started off as an online service platform that scanned and put restaurant menus back in the day. They have now diversified into a food delivery company. 

They have now expanded to 24 countries and serve almost 10,000 cities globally. 

On its 11th anniversary, CEO Deepinder Goyal said, “Every anniversary makes us proud of what we have achieved yet, acutely aware of how much there is left to do.”

Articles you must read – Restaurant Business Plan

Business Performance:

The burn rate of the company has reduced by 60% of what it was 6 months ago. However, it reported a loss of $294 million in FY 19. 

Deepinder said, “We achieved tremendous results in optimizing our costs, without affecting new product launches or innovation. We will shoot for market leadership, and simultaneously steer the business towards a more sustainable P&L”. 

Currently, Zomato has 3 main services, Food delivery, Dining out and Sustainability. 

Zomato currently offers food delivery in more than 500 cities across India. 

The order volumes in the top 15 cities have doubled in the last one year. The remaining cities contribute about 35% to the order volume.

Deepinder said that, “Our food @ work business is growing well, and some very large accounts are slated to go live soon. We are already doing 3 million orders a month for food @ work.

Zomato also claimed that its average monthly transacting users have increased by 211% to11.2 million users. While, the average monthly active restaurants have increased by 177% to 119K restaurants. 

Known as the “backbone” of Zomato’s services, by Deepinder, the average monthly active livery partners have increased by 308% in the first half of FY 2020. Currently there are more than 200K delivery partners associated with Zomato. 

Restaurant listing and Zomato Gold:

The restaurant listings on Zomato has gone up globally from 1.2 million in September 2018 to 1.5 million in September 2019. Half of the increase comes from India alone, said Deepinder. 

One of the primary products of Zomato, Zomato Gold, saw its users increase to 1.4 million. 

The cities in which Zomato Gold is applicable has increased by 34 cities to 54 as on September 2019 as compared to 20 cities in September 2018. 

From a restaurant owner point of view, gold is not for everyone, said Deepinder. He added, “We always encourage restaurants to determine if participating in Zomato Gold makes commercial sense for them. Some restaurant owners in India campaigned against Zomato Gold last month (#logout campaign); We engaged with the restaurant owner community and rolled out some changes to the program that were widely accepted by most restaurants, as well as users – Thus creating more balance in the program. A number of restaurants who have returned to Zomato Gold post these changes have seen a 100% increase in revenue.” 

In the last 6 months, Zomato has carried out over 65,000 orders for 2,200 restaurants across Delhi and Bengaluru. 

Zomato acquired Hyperpure in 2018. They provide fresh and good quality ingredients to its restaurant partners. They have projected a growth of 10x in the FY 20. 

In July, the food aggregator also started collecting used cooking oil from restaurants, processed it and then delivered it to biodiesel manufacturing plants. Zomato collects 130 tonnes of used oil per month from about 1000 kitchens in Delhi – NCR. They are planning to expand to 5 more cities from October. 

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Govt’s definition of startups just became more comprehensive. Here’s how:

Govt’s definition of startups just became more comprehensive. Here’s how:

The Department for Promotion of Industry and Internal Trade (DPIIT) released a gazette notification in February. 

The definition of startup is broader compared to the earlier definition under ‘Startup India, Standup India’ scheme.

According to the new definition, an entity will be considered a startup:

  1. Upto 10 years from the date of incorporation.
  2. If an entity’s turnover hasn’t exceeded INR 100 crore in any financial year from the date of incorporation.

In comparison to the definition of startups given earlier in DPIIT’s April 2018 gazette notification, An entity was considered a startup upto a period of 7 years from the year of incorporation and it’s annual turnover was not to exceed INR 25 crore in any of the financial years from the year of incorporation. 

Both the old and the new definitions require the entities to work on a business model with a high potential of innovation, development, employment and wealth generation. 

Minister of commerce and industry, civil aviation, Suresh Prabhu said they will simplify the process for startups to get an exemption on investments under Sec 52 (2) (viib) of Income Tax Act, 1961. This provision under this section is called angel tax.