Zomato is going to get bigger and bigger, may post double revenue

After eight years of operation, Zomato is on course to double its revenue and may also break even at operating level.

The year 2016 has begun on a good note for Zomato and may attain $1billion milestone.

Zomato co-founder Pankaj Chaddah told ET the company may over take Foodpanda and Swiggy.

Chaddah told ET that he expected the business to grow by at least four times by the end of this calendar year to 50,000 orders a day.
During 2014-15, Zomato posted operating revenue of Rs 96.7 crore.

"Our unit economics work. We have very low customer acquisition costs (of Rs 7.50 per customer), so we don't need money for existing businesses. (About) 90% of the time our (food ordering) discounts are driven by the merchants," said Chaddah.

At a time when food-tech companies are struggling and cutting costs and laying off people, Zomato’s news comes as an encouragement.
Even Zomato laid off 300 employees. The company also shut in Lucknow, Kochi, Indore and Coimbatore, recently.

Now, it has fixed focus on 10 large cities, including Ahmedabad and Pune. "More than 98-99% of the demand is from these cities," said Chaddah.