Zomato reported its revenues for the financial year 2019-20 at Rs 2,743 crore on a consolidated basis, up about 100 per cent since the last financial year. The firm also reported a consolidated net loss of Rs 2,386 crore during the same fiscal, up 138 per cent from the previous financial year, showed regulatory documents sourced from business intelligence platform Tofler. The firm’s total expenses for the fiscal were reported as Rs 5006 crore.
The Covid-19 pandemic and the resultant nation-wide lockdown had hit the firm in March 2020, bringing down order volumes significantly, according to the documents. This had also caused a huge reduction of the dine out revenue. The firm has been working on a number of products to address this loss, like introducing contactless dining and delivery and takeaway products in certain geographies outside of India.
The coronavirus pandemic is also expected to accelerate big-ticket venture capital, private equity as well as consolidation related deals in unicorns (a startup valued at more than $1 billion) and soonicorns in the country, according to many venture capitalists and industry experts. They said these mega deals which would be worth a few hundred million dollars might even go up to $1 billion in each company, especially in sectors such as e-commerce, edtech, fintech and foodtech which have benefitted from the tailwinds as the pace of digitisation increases.
For instance, Zomato’s rival Swiggy is in talks with new and existing investors including Qatar Investment Authority, GIC, Falcon Edge, Prosus and DST Global to raise almost $1 billion in funding this year at about $5 billion valuation, according to the sources.
Many of the investors strongly believe that there will be several IPOs (initial public offering) of India companies
at the American stock exchange Nasdaq and New York Stock Exchange in addition to listing in India starting in 2021 and accelerating in 2022 and 2023. Top Indian companies
such as Druva, Freshworks, InMobi and the likes of Zomato, Swiggy and Delhivery are looking to tap the public markets, according to industry sources.
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