Restaurant search and food delivery e-retailer Zomato has announced it will break even in several big markets, including India, during mid-2016. According to Forbes, India is generally a difficult market for e-commerce startups to be profitable in, since new Internet-based businesses often find it hard to attract investors.
Has Doubled Ad Revenues
However, New Delhi-based Zomato is valued at over $1 billion and has managed to receive investment from several large companies, like Sequoia Capital, Temasek Holdings and Info Edge. In April, Zomato is looking to complete another round of founding of about $200 million.
But Deepinder Goyal, founder and CEO of Zomato, says to Forbes that his business is prepared for growth with or without founding.
- Our unwavering focus is on making money. The bulk of our revenues comes from advertising and we have doubled our ad revenues in the last four months while keeping costs stable.
"Keeping Tabs on Every Bit of Spending"
Zomato launched in 2008 as a restaurant search service. In 2015 it added food deliveries and table bookings to its services. Apart from India, Zomato is also planning on breaking even in the markets of Indonesia and the United Arab Emirates. According to Goyal, the positive figures are results of careful spending and wise investments.
- We are not hiring for the moment, and we are keeping tabs on every little bit of spending we do.
Zomato is India’s largest business of its kind, with its list including 1.4 million restaurants in 23 countries. The company has grown through acquisitions, including American Urbanspoon last year.