Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

Can you imagine the hassle of juggling multiple suppliers just to ensure you have the right ingredients, often dealing with inconsistent quality, unreliable delivery times and a lack of variety? If you’re a restaurant or cafe owner in India, you know how much the country’s <keyword id="19894895" type="General" weightage="20" keywordseo="supply-chain" source="keywords">supply chain</keyword> inadequacies can impact your business. And this is precisely the gap <keyword id="20405262" type="General" weightage="100" keywordseo="Hyperpure" source="keywords" meta.keywordsubtype="org" meta.entityname="Hyperpure" meta.hostid="261" meta.entityid="Hyperpure">Hyperpure</keyword> has attempted to filled. <keyword id="19901323" type="General" weightage="20" keywordseo="Zomato" source="keywords" meta.keywordsubtype="org" meta.entityname="Zomato" meta.hostid="261" meta.entityid="Zomato">Zomato</keyword> changed the game for <keyword id="20020549" type="General" weightage="20" keywordseo="restaurant-owners" source="keywords">restaurant owners</keyword> in 2018, when it launched this <keyword id="23321229" type="General" weightage="20" keywordseo="B2B-food-procurement" source="keywords">B2B food procurement</keyword> platform. Today, Hyperpure acts as one stop shop that restaurants, cafes and cloud kitchens could rely on for fresh and high-quality ingredients. Further, this farm-to-fork model also ensures <keyword id="23321230" type="General" weightage="20" keywordseo="next-day-delivery" source="keywords">next-day delivery</keyword> and provides a wide range of ingredients across 10 cities in India. This not only saves restaurants time but also helps cut costs, reduce wastage, and maintain operational efficiency. Hyperpure’s offerings enable restaurants to reduce operational hassles and save costs by eliminating the need to juggle multiple vendors. It's like having a reliable partner who takes care of all the sourcing headaches, so chefs can focus on what they do best — cooking great food! <div type="Article" hostid="261" msid="112865820" title="The new &amp;quot;Zomato for Enterprise&amp;quot; will directly bill your company for business-related food orders" mstype="2" mssubtype="0"></div> In terms of performance, Hyperpure has achieved significant growth, doubling its revenue year-on-year. In Q3 FY24, Hyperpure reported a revenue of ₹859 crore, highlighting its scalability and market penetration, serving over 30,000 restaurants across 10 cities. Hyperpure’s ability to address the pain points of restaurant procurement efficiently and its constant evolution with offerings like ready-to-eat products have contributed to its exceptional success in an area where other platforms haven't ventured yet. The unique value proposition of Hyperpure stems from its integration with Zomato's vast supplier network and logistics infrastructure, which competitors like <keyword id="19896956" type="General" weightage="20" keywordseo="Swiggy" source="keywords" meta.keywordsubtype="org" meta.entityname="Swiggy" meta.hostid="261" meta.entityid="Swiggy">Swiggy</keyword> and <keyword id="19939134" type="General" weightage="20" keywordseo="Zepto" source="keywords" meta.keywordsubtype="org" meta.entityname="Zepto" meta.hostid="261" meta.entityid="Zepto">Zepto</keyword> have not yet replicated successfully. Swiggy is focusing more on restaurant meal delivery and grocery services, and it hasn't entered the B2B procurement market at a scale comparable to Hyperpure. Similarly, Zepto's focus remains on fast grocery delivery for end consumers, making Zomato's approach with Hyperpure stand out as a more focused and innovative solution in the B2B space. <div type="Article" hostid="261" msid="113661667" title="The “ultimate Zomato and Swiggy hack” might be opting for COD while placing your order, claim redditors!" mstype="2" mssubtype="0"></div>

Have you heard of Hyperpure — Zomato’s lesser-known cousin for restaurant owners?

When it comes to <keyword id="20667396" type="General" weightage="20" keywordseo="experimentation" source="keywords">experimentation</keyword>, <keyword id="20299302" type="General" weightage="20" keywordseo="food-delivery" source="keywords">food delivery</keyword> giant <keyword id="19901323" type="General" weightage="100" keywordseo="Zomato" source="keywords" meta.keywordsubtype="org" meta.entityname="Zomato" meta.hostid="261" meta.entityid="Zomato">Zomato</keyword> has often been at the forefront. Be it engaging in a banter with other brands online or attempting to deliver food from the skies, the Gurugram-based company has never shied away from trying out new things. Recently, Zomato introduced the feature to let users schedule their food orders up to two days in advance. Founder and<a href="https://www.businessinsider.in/business/news/zomato-will-absorb-around-280-paytm-employees-ceo-deepinder-goyal-says/articleshow/112738459.cms" data-type="tilCustomLink" target="_blank"> CEO Deepinder Goyal </a>announced the rollout of this feature across major cities including Delhi NCR, Bengaluru, Mumbai, Ahmedabad, Chandigarh, Lucknow, and Jaipur. The new scheduling option aims to provide greater convenience for users, allowing them to plan their meals ahead of time. The feature is making headlines and is expected to solve people’s woes of not getting their food orders on time. But this isn’t the first time that Zomato has taken on an experiment to try and solve a larger problem. In the past, there have been many instances where the food-delivery giant tried something unheard of. Let us take a look at some of these instances here. <h2>1. Intercity Legends: A culinary journey</h2> In an ambitious attempt to bring the diverse flavours of India to users’ doorstep, Zomato launched the 'Intercity Legends' feature. This initiative allowed users to order iconic dishes from different cities across the country, connecting food enthusiasts with renowned local cuisines without leaving their homes. The service aimed to satisfy a growing appetite for unique food experiences and explore regional delicacies from places like Delhi, Mumbai, and Kolkata. Despite its initial success, 'Intercity Legends' faced challenges in finding a sustainable market fit. After a period of operation, the service was suspended in April and briefly relaunched with a revised model focusing on pre-stocked items. Unfortunately, Zomato decided to shut it down entirely recently due to lack of demand and operational hurdles. In a candid update, CEO <keyword id="19901325" type="General" weightage="20" keywordseo="deepinder-goyal" source="keywords">Deepinder Goyal</keyword> acknowledged the closure, stating, "After two years of trying, not finding product market fit, we have decided to shut down the service with immediate effect." This move came just a day after Zomato announced its entry into the entertainment ticketing sector with the acquisition of <keyword id="19898109" type="General" weightage="20" keywordseo="Paytm" source="keywords" meta.keywordsubtype="org" meta.entityname="Paytm" meta.hostid="261" meta.entityid="Paytm">Paytm</keyword>'s movie and events ticketing business for Rs 2,034 crore. <h2>2. Hyperpure: Playing a more important role</h2> <a href="https://www.businessinsider.in/business/news/zomato-earned-rs-83-crore-from-platform-fee-what-it-is-how-it-benefits-the-company-and-how-it-affects-you/articleshow/112313589.cms" data-type="tilCustomLink" target="_blank">Zomato’s</a> foray into the B2B space with Hyperpure marked a significant shift from being just a food delivery platform to becoming a vital player in the food supply chain. Launched in 2019, Hyperpure aims to provide restaurants with fresh, high-quality ingredients, ensuring a seamless supply chain from farm to table. Hyperpure stands out for its commitment to quality assurance, working directly with farmers and producers to source ingredients free from contaminants. The initiative operates through a network of warehouses and logistics centres, allowing Zomato to maintain control over the entire supply chain. Additionally, Hyperpure emphasises sustainability by promoting eco-friendly packaging and encouraging sustainable farming practices. Leveraging its technological prowess, Zomato employs data analytics and AI to optimise inventory and predict demand, reducing wastage and ensuring timely deliveries. Starting in Bengaluru, Hyperpure has expanded to multiple cities, helping restaurants improve their food quality and operational efficiency. <h2>3. <keyword id="20069203" type="General" weightage="20" keywordseo="Blinkit" source="keywords" meta.keywordsubtype="org" meta.entityname="Blinkit" meta.hostid="261" meta.entityid="Blinkit">Blinkit</keyword> acquisition: Expanding into quick commerce</h2> In a strategic move to diversify its offerings, Zomato acquired Blinkit (formerly Grofers) in 2022. Blinkit, a startup known for its 10-minute grocery delivery service, allowed Zomato to enter the burgeoning quick commerce market. The acquisition was part of Zomato’s broader strategy to expand beyond food delivery and capture a significant share of the grocery and convenience sector. Today, Blinkit has evolved from a grocery app into a comprehensive platform offering everything from electronics and stationery to skincare products. This acquisition has proven to be a valuable asset, aligning with Zomato’s vision of providing a one-stop solution for various consumer needs. <h2>4. Food delivery via drones: Aiming for the skies</h2> One of Zomato’s most ambitious experiments involved drone delivery. In 2018, the company acquired the Lucknow-based aerospace company TechEagle to advance its drone delivery capabilities. CEO Deepinder Goyal had said at the time that drones are essential to reducing delivery times from 30.5 minutes to 15 minutes, as road transport is inefficient for fast delivery. Then in 2019, the company made headlines for successfully testing a hybrid drone that carried a 5 kg payload over a distance of 5 km in just 10 minutes. During the test, the drone reached a top speed of 80 km/h. The delivery was a non-commercial trial. However, in 2020, Zomato parted ways with TechEagle and reports said that the separation was amicable. During the same year, Zomato also received permission from the DGCA to begin testing drone delivery but not much has happened on that front. <h2>5. Infinity dining: Unlimited food and drinks</h2> The Infinity Dining feature was another bold experiment by Zomato designed to enhance dining experiences for its Gold members. Launched in three cities, this feature offered unlimited food and drinks at select partner restaurants for a fixed price. The initiative aimed to encourage more people to dine out and enjoy a unique value-driven experience. However, the feature faced backlash from partner restaurants, which protested against the deep discounts and operational issues it created. In response to the feedback, Zomato decided to pause Infinity Dining in 2019. A company spokesperson mentioned at the time, "We received a range of feedback about Infinity Dining, and have paused it as we would incorporate the feedback." Zomato’s journey shows its willingness to embrace experimentation and innovation. From intercity food deliveries to trying to play a role in restaurant supply chains and more, the company has continually sought to push the boundaries of what’s possible. While not every experiment has been successful, Zomato’s pursuit of new ideas and solutions shows its commitment to shaping the future of food and dining.

Scheduled food orders to using drones: Zomato experiments that made headlines

<keyword id="3378387" type="General" weightage="50" keywordseo="zomato-founder" source="Orion">Zomato Founder</keyword> and CEO <keyword id="476451" type="General" weightage="50" keywordseo="deepinder-goyal" source="Orion">Deepinder Goyal</keyword> has announced a new structure for the company that will see its businesses like <keyword id="830092" type="General" weightage="100" keywordseo="zomato" source="Orion">Zomato</keyword>, <keyword id="12724311" type="General" weightage="50" keywordseo="blinkit" source="Orion">Blinkit</keyword> and Hyperpure run by different CEOs under one umbrella organisation called 'Eternal'. In a note sent to employees on an internal communication channel, <keyword id="6361408" type="General" weightage="50" keywordseo="goyal" source="Orion">Goyal</keyword> said that they are now at a stage of life where "we are maturing from running (more or less) a single business, to now running multiple large companies". "Now that the Zomato-Blinkit deal is approved, we have three companies -- Zomato, Blinkit and Hyperpure -- in the order of business size/impact," Goyal said in the note seen by IANS. "We are transitioning from a company where I was the CEO to a place where we will have multiple CEOs running each of our businesses (e.g. Zomato, Blinkit, Hyperpure, Feeding India), all acting as peers to each other, and working as a super-team with each other towards building a single large and seamless organisation," he elaborated. The company is going to call this larger organisation "Eternal", at a time when Zomato's stock gets hammered on Dalal Street (it was hovering around Rs 46 on Monday and has nosedived around 69 per cent this year). Goyal said that 'Eternal' will have multiple companies. "It already has Zomato (delivery+dining out), Blinkit, Hyperpure, and Feeding India. Eternal will remain an internal name for now," he said. The new branding has been acknowledged by the company employees, with the "Eternal" logo now being placed at the company's premises and merchandise like t-shirts. Late last month, the online food delivery platform Zomato allotted nearly 4.66 crore shares to its employees from its employee stock option plan (ESOP) pool at the face value of Rs 1. The board of directors approved the allotment of 4,65,51,600 equity shares to employees upon exercise of vested stock options, according to its filing with the stock exchanges. SEE ALSO : <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/sustainability/news/plant-based-meat-proves-to-be-healthier-and-more-sustainable-than-animal-products-study/articleshow/93264677.cms">Plant-based meat proves to be 'healthier and more sustainable than animal products': study</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/usain-bolts-startup-with-indian-firms-investment-stops-operations-in-us/articleshow/93264886.cms">Usain Bolt's startup with Indian firm's investment stops operations in US</a>

Zomato's Deepinder forms umbrella organisation 'Eternal' with multiple CEOs

<ul><li><keyword id="830092" type="General" weightage="20" keywordseo="zomato" source="Orion">Zomato</keyword> management is confident of growing at a CAGR of 40% for the next two years. </li><li>Food inflation has been affecting their restaurant partners but that’s making them advertise more. </li><li>The street has been worried about <keyword id="12724311" type="General" weightage="50" keywordseo="blinkit" source="Orion">Blinkit</keyword> acquisition, now believes it’s a rare growth plus profitability play.</li></ul>Zomato has delivered more than profits to the table in the first quarter. It’s a rare new-age company that’s posted profits, without backing off from the high-growth path that companies such as it are known for. The street cheered the stock as it went up by 10% in morning trade. In addition to posting consolidated net profit of ₹2 crore for the very first time, it also guided that its revenues will grow at a compounded annual growth rate (CAGR) of 40% for the next two years. Zomato has confidence that none of its peers in <a href="https://www.businessinsider.in/business/corporates/news/small-regional-players-are-increasing-competition-says-hul-ceo/articleshow/102009466.cms">the consumer business has</a> displayed in the first quarter. “The assumption is that the worst is behind us in terms of demand slowdown. From hereon, there will be incremental growth and we are confident of delivering that growth,” Akshant Goyal, the CFO of Zomato said in an earnings concall. Its closest listed peers, quick service restaurants (QSRs) are seeing a dullness in their delivery business, Zomato believes that it won’t affect them as they contribute to only a single digit percentage of the business. Moreover, the spikes of seasonality have also tempered over time as IPL cricket matches that bring in a lot of orders in the past, have also gone down. The cricketing season had little to do with the 11% sequential growth in gross order value (GOV) that it has seen in Q1. “IPL doesn’t have much of an impact on our business as seen in the last two years. The seasonality is more towards the weather, school holidays etc,” explained Goyal, indicating that food ordering has turned into more of a habit than an event-driven exercise. <cmsannotation type="cmsannotation" annotationid="Food inflation? It helps us" comment="subhead" text="Food inflation? It helps us">Food inflation? It helps us</cmsannotation> The ‘platform’ that Zomato is, has multiple revenue levers, and is also seeing benefits from food inflation that’s affecting its restaurant partners. “Small restaurants, given the lack of growth of their business, are spending aggressively advertising on our platform and this trend has also helped our take rates go up,” Goyal explained. Zomato now has multiple businesses under its wings — the food delivery business which remains its core; dine-in business, quick commerce business Blinkit, and Hyperpure, the business which delivers ingredients to restaurants. Each of them is at a different stage of maturity adding to its profits and growth at different levels. “Our portfolio will be as it is, some businesses will grow faster than others. But if we can grow our revenues by 15% sequentially in one quarter, then we can easily aim for 25-30% growth (food business) this year and the next,” said Goyal. <cmsannotation type="cmsannotation" annotationid="The IPO hangover" comment="subhead" text="The IPO hangover">The IPO hangover</cmsannotation> This management confidence has rubbed off on the street, which has been worried about the acquisition of Blinkit which was done after the initial public offer in late 2021. Most brokerages have been lauding the company with a variety of adjectives – the best of which is upgrades. “In a journey of dramatic twists and turns since IPO, Zomato achieved a key milestone of adjusted EBIDTA and consolidated PAT positive, way earlier than the guidance. This puts to rest all the concerns around Zomato's ability to make 'respectable' profits. Results also give more credibility to the management and its execution prowess, which is particularly positive for Blinkit which most investors ascribe zero (or negative) value,” says Jefferies. Kotak Institutional Equities raised its FY24-26 food delivery revenue estimates by 8-9%, driven primarily by higher take rates. “Our EBITDA/EPS estimates witness sharp upgrades as we bake in higher CM with the resultant operating leverage benefits. Blinkit business can drive further upsides to estimates as well as fair value,” it says. <keyword id="4244153" type="General" weightage="50" keywordseo="j-m-financial" source="Orion">J M Financial</keyword> calls it a long-term growth story. “We continue to be bullish on the company’s long-term growth prospects in the hyperlocal delivery space as we believe it is well positioned to benefit from robust industry tailwinds such as improving tech penetration and rising income share of digitally native millennials / GenZ,” it says. <div type="javascript" title="Custom" contenttype="Text"><cdata><![CDATA[]]></cdata></div>

The street is not 'Blinking' on Zomato anymore

<ul><li><keyword id="830092" type="General" weightage="20" keywordseo="zomato" source="Orion">Zomato</keyword>’s promise to turn net profit positive in a year has cheered investors. </li><li>Margins in its core food delivery business has hit a multi-quarter high. </li><li>The worry? Monthly transacting users and gross order value has declined versus the previous reported quarter. </li><li>Nomura believes Zomato will find it difficult to achieve double-digit contributory margin with high growth in the long term </li></ul>Two years after it listed on the bourses, Zomato is on a recovery path. The stock which hit a high of over ₹150 per share fell sharply subsequently to below ₹50 a piece. However, the last quarter (Q1FY24) has seen a recovery from that level and it has now surpassed its listing price of ₹76. The stock has been rising steadily in the last three weeks, after its Q4 earnings report where it turned EBITDA positive in its core business, without including Blinkit, its quick commerce business. EBITDA is net income (earnings) with interest, taxes, depreciation, and amortisation. Moreover, the management also promised to turn positive not just at the consolidated adjusted EBITDA level but also at the profit after tax level in a year. Financial services company, JM Financial says this commitment is the ‘cherry on the cake’. “Tough macro posed growth headwinds but management showed urgency on profitability and that was despite the Gold programme launch,” said Jefferies. Zomato Gold is a subscription plan that offers free deliveries within a 10-kilometre radius for orders above ₹199. During the quarter, as many as 30% of the gross order value, from 1.8 million customers, came from Gold. The Gold plan could hurt its contributory margins (CM) because of its inability to charge every order. Yet, as of Q4, its CM in core food delivery business are comfortable after hitting a multi-quarter high. Contributory margins represent the incremental money generated for each unit sold after deducting the variable portion of the costs. “The core business milestone was achieved mainly on the back of solid expansion in the food delivery contribution margin to 5.8% in Q4 vs 5.1% in Q3. This was because profitability levers such as improvement in restaurant commissions and ad income, and lower discounts/variable cost offset the adverse impact of Gold launch,” said JM Financial. Ordering effects After the post-pandemic boom effects faded away, a lot of consumption patterns have changed, also evident in consumer spending on fast food — impacting growth in quick service restaurants. These headwinds have been impacting Zomato as well. The growth in Zomato’s food delivery business seems to have flatlined. Food gross order value declined 2% quarter-on-quarter, even as it grew 12% year-on-year. Moreover, its monthly transacting users (MTU) declined by 5% QoQ to 16.6 million, while growing at 6% YoY. Apart from the one-time impact of its decision to exit from 225 cities, the company attributes MTU decline to optimised marketing spend and withdrawal of the human support interface for abusive customer cohorts. “Also because of Zomato Gold, the MTUs have come down and not gone up because we do see an impact of clubbing some orders in the same households, which might have just a single membership,” Akshant Goyal, chief financial officer of Zomato said in an earnings concall. The management, however, remains confident about food delivery ordering going up in the first quarter of FY24. Analysts, on the other hand, are not too confident about their ability to sustain growth beyond the first quarter as summer holiday and IPL impact during April/May are one-off events. Its other businesses, however, continue to display good growth. Blinkit’s gross order value grew 17% QoQ, while order volume grew 24%. Revenues of Hyperpure, its business to supply ingredients to restaurants, grew 13.5% QoQ. Offsetting margins with growth While it’s on a path to profitability, Zomato is also caught between a rock and a hard place — of growth versus margins. To boost growth, it will have to go in for discounts – the lack of aggressive discounting by all players is already visible in the moderation in food ordered during the IPL season, generally a big occasion for online food platforms. This year, the IPL spike in food ordering was at a modest 7% for the industry as compared to the 2020 IPL when it was over 50%, as per Redseer. This time, there were no high <a href="https://www.businessinsider.in/business/news/ipl-2023-sees-tier-2-cities-order-more-on-swiggy-zomato/articleshow/100673879.cms">decibel ads along with deep discounts.</a> Like other players in the business, the company will also find it tough to keep up with the high margin trajectory, while also chasing growth. “Overall, we lower our growth assumptions for its food delivery’s gross order value growth, from around 20% to around 17%, but raise our FY24F contributory margin estimate from 5.8% to 6.5%. We continue to believe Zomato will find it difficult to achieve double-digit contributory margin, with high growth in the long term,” said Nomura. Restaurant commissions grow but may hit an ONDC wall In the last two years, the company was also able to improve take rates or the commissions it charges restaurants consistently. Its take rates are now close to 18%. “Broadly, with our take rates, the mission is to be competitive, and we are lower than what the competition is charging. So, as we continue to add more value to restaurant businesses, we expect some improvement in commission revenue going forward,” said Goyal. But competition is heating up in the sector. The Department for Promotion of Industry and Internal Trade’s Open Network for Digital Commerce (ONDC) has breached the territory that was hitherto dominated by Zomato along with Swiggy. On the face of it, it might seem like restaurants might be offered better terms on ONDC. While Zomato will be able to compete with ONDC on efficiency and also even overall costs – as third party deliveries might be costlier– HSBC Global Research believes that it might flatten growth. “Estimates for food delivery revenue in the long term remain largely unchanged. Our short-term estimates change slightly as we build in a marginally slower increase in take rate,” the research firm said. In spite of short-term and long-term challenges ahead, Zomato seems to have settled into its listed company status to deliver value to investors by chasing topline growth instead of customers, with discounts.

With Zomato rallying over 25% in the past month, street looks at the road ahead

<ul><li><keyword id="830092" type="COMPANY" weightage="20" keywordseo="Zomato">Zomato</keyword> is reportedly in talks to invest $300 million in grocery delivery startup <keyword id="2466939" type="PERSON" weightage="20" keywordseo="Grofers">Grofers</keyword>, a company it was once planning to acquire.</li><li>Zomato had recently announced its $1.1 billion initial public offering plan, in which it had mentioned that it has kept the door open for future investments.</li><li>However, the $5.4 billion company is not a new player in the grocery segment.</li></ul>IPO-bound foodtech unicorn Zomato had a short-lived stint in grocery retail in 2020, but it looks like the Deepinder Goyal-led startup still has one eye on the sector. According to an <a href="https://economictimes.indiatimes.com/tech/startups/ettech-exclusive-zomato-may-invest-100-million-in-grofers-as-e-grocer-shelves-us-ipo-plan/articleshow/82441477.cms">ET report,</a> Zomato is in talks to invest $300 million in grocery delivery startup Grofers, a company it was once planning to <a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/zomato-may-buy-grofers-in-an-all-stock-deal-valuing-e-grocer-at-750m/articleshow/75133519.cms?from=mdr">acquire</a>. Zomato had recently announced its $1.1 billion initial public offering plan, in which it had mentioned that it has kept the door open for future investments. “We will from time to time continue to seek attractive inorganic opportunities that we believe will fit well with our strategic business objectives and growth strategies,” said the company in its Draft Red Herring Prospectus (DRHP). As per the ET report, Zomato is exploring a comeback in the grocery sector, through a subsidiary, instead of going all in by itself. And it makes sense, as the margins in the grocery sector are low. According to brokerage firm CLSA’s report, “Groceries in the country are distributed largely through Kirana or mom-and-pop brick -and-mortar stores, where overall supply chain margin varies from 14-20%, of which the distributor books 4-6% and the retailer makes 8-14%. Given the tight margins available, prospects for profitable operations for an aggregator are low.” However, the $5.4 billion company is not a new player in the grocery segment. During the COVID-19 pandemic, Zomato had announced that it would let users order groceries through its app. “Grocery delivery has always been on our long term radar since it fits into our vision of ‘better food for more people’. Given the current need of our customers, we quickly sprung into action to serve,” Zomato’s chief operating officer Mohit Sardana had said then. As per the CLSA report, between April to September 2020, Zomato delivered 1.1 million grocery orders, consisting of 7.8 million products. Zomato also runs a business-to-business subsidiary company called Hyperpure, through which it supplies ingredients like vegetables and fruits, poultry, groceries, meats, seafood, dairy, beverages, and eco-friendly packaging materials to restaurants. And one of the reasons behind investing in Grofers could be to secure a strong foothold for the Hyperpure business, which currently sees tough competition. “The Hyperpure business model rests on creating an entire supply ecosystem to restaurants. There are several large, well-funded startups trying to create the last mile supply ecosystem like Udaan, Instamart etc,” said a report by Ambit financial. Its rival Swiggy has already established itself in the grocery segment, as well as its hyperlocal delivery service Swiggy Genie. Zomato could also be taking a leaf out of its successful counterpart in Southeast Asia, Grab, which is also headed for a market debut. Grab has created an entire ecosystem of deliveries – food and grocery. Meanwhile, Grofers has <a href="https://economictimes.indiatimes.com/tech/startups/ettech-exclusive-zomato-may-invest-100-million-in-grofers-as-e-grocer-shelves-us-ipo-plan/articleshow/82441477.cms">reportedly</a> backed out of its plan to list in the US through a special purpose acquisition company. Grofers, which finds competition from Mukesh Ambani-led JioMart, Tata-backed BigBasket and global e-commerce giant Amazon, has been on the lookout for funds and has also been in talks with Japanese investment giant SoftBank. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/zomato-ipo-the-food-delivery-unicorn-has-filed-drhp-for-a-1-1-billion-initial-public-offering/articleshow/82286611.cms">Zomato reveals its much-awaited IPO plan and it’s worth $1.1 billion</a>

Here’s why Zomato is reportedly cutting a $300 million cheque for Grofers

New Delhi, July 10 () Online food ordering platform Zomato on Friday said its revenue in the last financial year jumped over two fold to USD 394 million (around Rs 2,960 crore) as compared to 2018-19. The earnings before interest, taxes, depreciation, and amortization (EBITDA) in the last financial year stood at around Rs 2,200 crore, Zomato said in its performance report. In 2018-19, the revenue was about Rs 1,440 crore and EBITDA stood at Rs 2,080 crore. "Moving our business towards profitability was a core focus for us in FY20 and we made significant progress along that journey," Zomato said. While COVID-19 has impacted the size of the company's business, it has accelerated its journey to profitability. "In terms of the size of the business, COVID-19 has set us back by a year or so, but a year is only a small blip when one is building a company for the next 100 years," it added. "COVID-19 has positively impacted the health of our business – we seem to have gained 2-3 years along this vector. In July 2020, we estimate our monthly burn rate to land under USD 1 million, while our revenue should land at around 60 per cent of pre-COVID peaks (USD 23 million per month)," the report said. Zomato expects to make complete recovery over the next 3-6 months while continuing to maintain tight control on costs and profitability, it added. Highlighting the performance of its business segments, Zomato said FY20 was a defining year for food delivery in India. While FY19 saw hyper-competition between 4 well-funded food delivery players, FY20 ended with a two player market structure, it claimed. The company's FY20 India Food Delivery gross merchandise value (GMV) grew to USD 1,496 million (over Rs 11,250 crore) as against USD 718 million (over Rs 5,395 crore) for 2018-19, the report said. As of now, food delivery GMV has recovered to 60 per cent of pre-COVID levels. "We have taken a number of important steps to ensure safety of our food delivery customers, which has been a significant driver of the rebound in our business so far," it added. As offices start opening up, these professionals are now starting to move back to the larger cities and the company expects sharp recovery in order volumes as lockdown continues to ease and the operating environment improves, the report said. The unit economics of the company's food delivery business have improved consistently over the last 18 months, it added. About the Dining out, the report said, "Our dining out business grew steadily in spite of headwinds (e.g. logout campaign against Zomato Gold by restaurants in India) with significant gains in EBITDA margins across India and our international markets in FY20". Dining out revenue grew to over Rs 421 crore in 2019-20 as against about Rs 349 crore in the preceding fiscal, it added. This business is fast moving towards being a transaction-led business where the focus is to close the loop with restaurants by encouraging users to pay their eating-out bills through the Zomato app, the report said. The recovery in the dining out is going to be slow. Users will be concerned about social distancing and hygiene and restaurants will need to reorganise themselves to be able to build trust with users on these fronts, it added. Emphasising that its B2B supplies (Hyperpure) is growing strongly, Zomato said it believes that it has early indications of a strong product market fit. "Until now, we have only been serving Delhi and Bengaluru with Hyperpure. We have covered a lot of ground in the last two years, and we are now expanding rapidly into new cities," the report said. The Hyperpure revenue for 2019-20 stood at over Rs 110 crore as against about Rs 13 crore in the previous year, it added. About its social responsibility arm, Zomato Feeding Foundation, the report said the foundation aims to be the largest and most impactful not-for-profit aimed at solving hunger needs in the developing world. Feed the Daily Wager campaign collected Rs 32 crore which was used to distribute over 65 million meals in the form of ration kits to the daily wager community, hit hard by the COVID-19 crisis, it added. "We aim to grow our Feeding Foundation community multiple folds going forward. Solving hunger is a massive problem, but a solvable one if all of us just started caring about it enough," the report said. The report also said Zomato has reinstated all the original salaries of its employees who had agreed for salary cuts during the initial days of the COVID-19 crisis. AKT ANU ANU

Zomato FY20 revenue jumps to Rs 2,960 cr

<ul><li>Zomato celebrated its 12th birthday on July 10. </li><li>Zomato was founded as Foodiebay by <keyword id="476451" type="PERSON" weightage="20" keywordseo="Deepinder-Goyal">Deepinder Goyal</keyword> and Pankaj Chaddah.</li><li>But the startup’s birthday celebration comes at a time when the company is reeling under the impact of the <keyword id="8829783" type="UNKNOWN" weightage="20" keywordseo="coronavirus-pandemic">coronavirus pandemic</keyword>. </li></ul>Indian foodtech unicorn Zomato just celebrated its 12th birthday July10). The startup has come a long way from being a food listing platform to today being a one-stop destination for all things food. How the company started “It was towards the end of my five years at IIT that I was ordering a Dominos pizza and back then, you had to call and place an order. So while in college I started a food ordering company, it didn’t work. It was way too early,” Deepinder Goyal, co-founder of Zomato said in a recent Twitter live chat with the <a href="https://twitter.com/ShivNadarFDN/status/1276855510453518339">Shiv Nadar Foundation. </a> Goyal then dumped the idea of the company and went on to join Bain and Company. While in the corporate world, Goyal saw that people wanted a food listing platform as they looked for scanned menus and phone numbers to place orders. “That worked well and it's been 12 years of doing hundreds of other things post that,” he said. Interestingly, it continued to be a weekend project for one and a half years and only after having revenue coming in, Goyal left the corporate world to start up. Zomato over 12 years 2008 Founded as Foodiebay by Deepinder Goyal and Pankaj Chaddah 2010 raises angel investment and rebrands as Zomato 2012 Goes international with UAE launch 2015 Launches food delivery 2017 Launches membership program Zomato Gold 2018 Launches hyperpure, a B2B supplies business for restaurants 2018 Launches Food@work September 2019 Launches videos on its platform December 2019 Launches Zomaland January 2020 Acquires Uber Eats July 2020 Turns 12 Where Zomato stands today <div type="image" title="Hello-Zomato-New" msid="76901200" hostid="261"></div> But Zomato’s birthday celebration comes at a time when the company is reeling under the impact of the <keyword id="1754604" type="PERSON" weightage="20" keywordseo="coronavirus">coronavirus</keyword> pandemic. Zomato has doubled its revenue from $192 million in FY19 to $394 million in FY20. The company saw its EBITDA loss has widened by 5.7% from $277 million in FY19 to $293 million in FY20. “While COVID-19 has impacted the size of our business, it has accelerated our journey to profitability. In terms of the size of the business, COVID-19 has set us back by a year or so – but a year is only a small blip when you are building a company for the next 100 years,” wrote Goyal in a blog. In the first quarter of FY21, with most restaurants being shut and operating on a takeaway only business, Zomato reported a revenue of $41 million and loss of $12 million. In April, Zomato raised $5 million from Pacific Horizon Investment Trust. The fund is managed by British investment manager Baillie Gifford. In January, Zomato had raised $150 million from Ant Financial. But the round hasn’t been closed. Zomato is raising $600 million as announced by Goyal at an event in December 2019. Zomato, which was supposed to get another tranche of investments from China’s Ant Financial, is in trouble because of India’s recent change in FDI policy, where any company sharing a border with India cannot invest directly in an Indian company. The startup has also laid off 13% of its workforce and has also implemented permanent work from home for most employees to cut retail costs. “Our business has been severely affected by the COVID lockdowns. A large number of restaurants have already shut down permanently, and we know that this is just the tip of the iceberg. I expect the number of restaurants to shrink by 25-40% over the next 6-12 months. What actually happens, for better or worse, is anybody’s guess,” he wrote in an official blog. However, the startup has enough money in its bank as Goyal wrote that they “have a very generous amount of runway in the bank”. SEE ALSO: <a href="https://www.businessinsider.in/business/news/zomato-has-doubled-its-revenue-but-founder-founder-deepinder-goyal-says-covid-19-has-made-the-company-lean-and-mean/articleshow/76893760.cms">Zomato has doubled its revenue and founder Deepinder Goyal says COVID-19 has made the company lean and mean</a> <a href="https://www.businessinsider.in/business/news/mukesh-ambani-beats-warren-buffet-on-the-list-of-billionaires/articleshow/76896889.cms">Mukesh Ambani beats Warren Buffett on the list of billionaires</a>

You Searched For "Hyperpure" and got 8 results

Have you heard of Hyperpure — Zomato’s lesser-known cousin for restaurant owners?

Ashmita Gupta

Scheduled food orders to using drones: Zomato experiments that made headlines

Divyanshi Sharma

Zomato's Deepinder forms umbrella organisation 'Eternal' with multiple CEOs

IANS

The street is not 'Blinking' on Zomato anymore

Katya Naidu

With Zomato rallying over 25% in the past month, street looks at the road ahead

Katya Naidu

Here’s why Zomato is reportedly cutting a $300 million cheque for Grofers

Sanchita Dash

Zomato FY20 revenue jumps to Rs 2,960 cr

PTI

Zomato turns 12 – from a weekend project to a $3 billion company, here’s the startup’s journey over the years

Sanchita Dash

Popular Keywords

Buying Guides