Online food ordering and restaurant discovery platform Zomato saw its revenue more than triple in its recent fiscal year, but its expenses also grew more quickly.
The India-based company’s revenue soared to US$206 million in FY 2019 from US$68 million in FY 2018. The increase was mostly driven by its food delivery business, as stated in the company’s most recent annual report.
Photo credit: Zomato
Zomato spent US$500 million in expenses over the year, dwarfing the US$80 million worth of expenses it recorded in FY 2018.
It said it invested heavily in promotional marketing activities for its food delivery vertical, which accounted for most of its US$294 million losses for FY 2019.
“All the marketing investment we made in FY 2019 will bear fruit in FY 2020 and beyond when we realize the LTV [lifetime value] of the users that we have acquired,” the company said in its report.
Editing by Charmaine de Lazo
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