Zomato posts USD 294 mn loss for FY19; revenue up 3-fold to USD 206 mn

Online food ordering firm Zomato Friday reported a loss of USD 294 million (about Rs 2,035 crore) for the year ended March, even as revenues jumped three-fold to USD 206 million.

The company had posted revenue of USD 68 million in the previous fiscal year.

In its annual report for FY19, Zomato said the loss was mostly on account of the food delivery business in India. The loss for FY18 was not disclosed.

The company said total cost increased to USD 500 million for FY19 as against USD 80 million in FY18.

All the marketing investment the company made in FY19 will bear fruit in FY20 and beyond when it realises the lifetime value of the users that it has acquired, Zomato said.

The company will continue to invest in growing the market at the same pace as long as there is long term value to create, it added.

Saying that the company is realigning its business segments, Zomato said: "Three years ago, advertising represented 100 per cent of our revenue and focus. Today, we are largely a transactions company - 85 per cent of our revenue in March'19 was driven by transactions."