Accounts Project On

Revenue Model

COMPANY BREIFING• Zomato is a restaurant search and discovery service

founded in 2008 by Deepinder Goyal and Pankaj Chaddah, both graduates from IIT DELHI.

• It is headquartered in Gurgaon and operates in 23 countries, including India.

• It features restaurant information, scanned menus and photos sourced by Local Street teams, as well as user reviews and ratings for more than for 42,000 restaurants in 36 cities across India.

• The company also provides cashless payment, online ordering, table reservation and point-of-sale systems.

• Zomato has its official website and has application for ios, android, windows and blackberry devices.

• The website currently has alexa ranking – Global: 530 and in India – 77.

• The company’s official website has a monthly visit of 90 Million users.

• Zomato’s revenue for the financial year 2015-16 was 184.97 crore.

HOW IT STARTED??• After graduating Deepinder and Pankaj started working in Bain and company

as a management consultant.• It was in the cafeteria of Bain and Company that they conceived the idea of an

online restaurant information service after seeing the demand for menu cards among his colleagues.

• They left Bain in 2008 to start “FOODIEBAY”

• FOODIEBAY was launched in 2008 in the apartment of Deepinder Goyal, which was later in 2010 was renamed as “ZOMATO”.

• Both IIT DELHI alumni started to scan restaurant menus and upload it on an intranet website for Bain employees. The website saw a lot of traffic and was launched publicly in 2008.

• The website began by listing restaurants in Delhi NCR, and quickly expanded to Kolkata and then Mumbai.

• Soon after launching, Foodiebay received the Seed funding of ₹4.7 crore (US$1 million) from Info Edge (India), the parent company of the Naukri.com group.

Funds & SourcesDate Amount/Round Lead Investor Investors

Sept, 2015 $60M / Series G Temasek Holdings Vy Capital

2

Apr, 2015 $50M/Series F Info Edge Vy Capital

3

Nov, 2014 $60M/ Series E Info Edge

Vy Capital

3

Nov, 2013 $37 M/ Series D Sequoia Capital 2Feb, 2013 $37 M/ Series D Sequoia Capital 1

Sept, 2012 $2.3M / Series B Info Edge 1

Sept, 2011 $3.5M / Series A Info Edge 1

Aug, 2010 $1M / Seed Info Edge 1

Revenue Model Of Zomato

Sources of revenue

Restaurant advertising

72% of total revenue

Event advertising

4% of total revenue

Event ticket sale

12% of total revenue

Consulting services

3% of total revenue

Online food ordering

2% of total revenue

Subscription

7% of total revenue

Restaurant Advertising

This is when it places banner ads for restaurants on the website. This accounts for 72% of Zomato's revenue. When you search restaurants/cuisines/locality and get results, the results will show the list of restaurants along with a separate list of restaurants tagged as "Sponsored". These sponsored restaurants are advertisements and Zomato charges these restaurants for showing their name in results.

Event Advertising This is when specific events are promoted on Zomato -

this revenue primarily comes from restaurant based advertisers. Typically, tickets for these events are also sold on Zomato. This accounts for 4% of Zomato’s revenue.

Event Ticket Sale Commissions on ticket sales through Zomato;

primarily for restaurant venues; accounts for 12% of its revenue. It makes money by other ways like booking event tickets. Zomato takes a commission by selling tickets for various events.

Consulting Services Restaurant chains ask for advice on where to open

their next outlet/branch. Zomato dig through terabytes of data to tell them where the demand lies and what's the competition like. It amounts to 3% of total revenue.

Subscription Zomato charges merchants who want premium

dashboard access which allows them to edit and change their listing as per their convenience. It amounts to 7% of total revenue.

Online Food Ordering This is only limited to the online ordering platform of

ZOMATO which was introduced lately in 2015. Zomato takes a cut out of the order total from the restaurant. These commissions typically range from 5-20% of the order value. It amounts to 2% of total revenue.

DELHI N

CR

KOLKATA

MUMBAIPUNE

BENGLURU

CHENNAI0

100200300400500600700800

VALUE PER ORDERColumn1Column2

Revenue Analysis

Online restaurant discovery and food ordering service Zomato's losses are shooting up significantly as it invests heavily on online food delivery services. Zomato's loss before tax has shot up by 262% to Rs 492.3 crore for the financial year ended March 31, 2016, from Rs 136 crore loss in the previous year, which was disclosed in Info Edge financials.Zomato’s operating revenues has nearly doubled to Rs 184.97 crore for the year from Rs 96.7 crore in the previous year.

REVENUE IN INDIA

REVENUE PROFIT/LOSS

-250

-200

-150

-100

-50

0

50

100

14-1515-16

OVERALL REVENUE

REVENUE PROFIT/LOSS

-500

-400

-300

-200

-100

0

100

200

14-1515-16

Companies Acquired by Zomato

Date Acquired Amount

Apr 22, 2015 NexTable, Inc. Cash & Stock

Jan 29, 2015 Mekanist Cash

Jan 12, 2015 Urbanspoon $55M (terms undisclosed)

Dec 18, 2014 Cibando Unknown

Sep 23, 2014 gastronauci.pl Unknown

Aug 22, 2014 Lunchtime Unknown

Aug 22, 2014 Obedovat Unknown

Jul 1, 2014 Menu Mania Unknown

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