One of the biggest food aggregator app Zomato which looks like a profit making company has reached the cash burn to the extent of 15 million USD per month to sustain its daily operation. Although earlier the company had announced three fold jump in its revenue.
The ballon of startups across the world keeps on inflating and there is no guarantee as when it Will burst with the melting down of the world economy. The Zomato is one of the leading online restaurant guide and food ordering platform has recently revealed a shocking figure of its expenditure which is touched to the 15 million a month.
According to the report published by the Press Trust of India, the company is said to become profitable by the end of 2020
“In a year’s time, we should be a profitable company. We have been able to reduce our cash burn by around 70 per cent from what it was seven months ago,” Zomato founder and CEO Deepinder Goyal told PTI.
The company’s current cash burn is $15 million per month, he added.
Earlier in October, Zomato had said it has witnessed over three-fold jump in revenue to $205 million (around ₹1,458 crore) for April-September 2019 from $63 million (around ₹448 crore) in the same period a year ago.
The company although keeps in increasing its valuation with the multiple rounds of funding, said the sources. The company recently announced plans to raise up to $600 million (around ₹4,277 crore) by next month in a new funding round.
When asked about the segments the company will be focussing on for growth, Goyal said it will be on all segments. The company is making all efforts to achieve its mission, ‘Better Food for Everyone’, he added.