Zomato revenue up at ₹2,604 crore in FY20

Forum Gandhi Mumbai | Updated on April 30, 2021

Food-tech aggregator intends to raise ₹8,250 crore through public listing

Food-tech aggregator Zomato’s revenue from operations has grown from ₹466 crore in FY18 to ₹2,604 crore in FY20, signifying around 5.5x growth over the three-year period. Revenue from operations for the nine months ended December 31, 2020, stood at ₹1,301 crore.

Zomato said that it has incurred a loss of ₹106.9 crore, ₹1,010 crore, ₹2,385.6 crore and ₹682 crore in fiscal years 2018, 2019, 2020 and the nine months ending December 31, 2020, respectively.

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The company has disclosed this in a draft red herring prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI) to raise ₹8,250 crore through an initial public offering. This is the first major offering by an Indian consumer internet unicorn in several years and comes at a time when the food delivery business has seen exponential growth during the pandemic.

Zomato said its dining out business is still recovering as customers remain reluctant to dine out. “Government actions and lockdowns to contain the spread of Covid-19 could adversely impact us,” it explained.

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“We expect our costs to increase over time and our losses will continue, given significant investments expected towards growing our business,” the company said.

Additional funding

Zomato said that due to the covid-19 pandemic, it has also experienced negative cash flows from operations in the recent past. In the future, for the same, it may require additional funding.

“We may require additional capital through financing in the future and our operations could be curtailed if we are unable to obtain required capital and financing on favourable terms when needed.”

Zomato said that it intends to raise ₹8,250 crore through public listing. Out of this, it plans on issuing fresh equity shares worth ₹7,500 crore. The rest, amounting to ₹750 crore, will be raised through an offer for sale (OFS) by existing investor Info Edge, which is the Gurugram-based company’s earliest investor.

At least ₹5,625 crore will be used to fund organic and inorganic growth initiatives over the next five financial years.

Zomato’s shareholding pattern stated that Info Edge was its largest shareholder and controlled 18.5 per cent in the company, followed by Uber BV holding 9.13 per cent, with Alipay Singapore Holding Pte Ltd and Antfin Singapore Holding Pte Ltd holding close to 8.33 per cent and 8.22 per cent in the company, respectively.

Published on April 29, 2021

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