Zomato Ltd.
Is it a time for new edge companies?
ABOUT
Incorporated in 2010, Zomato Limited is one of the leading online Food Service platforms in terms of the value of food sold. Its offerings include food delivery, dining-out services, Loyalty programs, and others. As of December 31, 2020, Zomato has established a strong footprint across 23 countries with 131,233 active food delivery restaurants, 161,637 active delivery partners, and an average monthly food order of 10.7 million customers.
KEY POINTS
Leading Foodservice platform Zomato Ltd. is one of the leading Food Services platforms in India in terms of the value of food sold. During FY21, 32.1 million average Monthly Active Users visited its platform in India. As of March 31, 2021, Zomato had 389,932 Active Restaurant Listings. Its mobile application is the most downloaded food and drinks application in India in each of the last three fiscal years on iOS App Store and Google Play combined. App gets ~90 billion monthly visits as of FY23 In India, ~248 cities are at contribution break even and as of FY22, Zomato is active in 1000+ cities with 500+ cities added in FY22.
Business segments
Broadly, Zomato operates in three business segments; 1) Food delivery, 2) Dining out, 3) Hyper pure.
1) Food Delivery
There are three key stakeholders in Zomato’s food delivery business – (i) Customers, (ii) Delivery Partners, and (iii) Restaurants. Over the last few years, Zomato has experienced rapid growth in food delivery in India with its orders increasing by 13.2x from 30.6 mn in FY18 to 403.1 mn in FY20, while its Gross Order Value (GOV) grew 8.4x from INR 13,341.4 mn in FY18 to INR 112,209 mn in FY20. As of FY22, Zomato delivered orders worth Rs213Bn across 535.2 million orders, bringing the avg order value to ~Rs398, GOV was Rs213. **As of Q2FY23, Avg monthly transaction was 17.5Mn, Avg monthly active food delivery restaurant partners 2,07,000 and active delivery partners were 3,41,000
2) Dining Out - Customers use Zomato’s dining-out offerings to search and discover restaurants, read and write customer-generated reviews and view and upload photos, book a table and make payments while dining out at restaurants. Zomato currently monetizes its dining-out offering through advertisement sales products through which restaurant partners pay the company for enhanced visibility on its platform. In FY20, 8,064 restaurant partners paid for Zomato’s advertising sales product in India. Revenue decreased 15% YoY in FY22, primarily on account of shut down of most of its international operations and they decided to focus only on the India business
3) Hyper pure Hyper pure is Zomato’s farm-to-fork supplies offering for restaurants in India. Zomato sources fresh, hygienic, quality ingredients and supplies directly from farmers, mills, producers, and processors to supply to its restaurant partners, helping them make their supply chains more effective. As of Q2FY23, 40,000 unique restaurants billed
High Profile Exits
As of 2nd Jan 2023, Gunjan Patidar, Co-founder and Chief Technology Officer resigned
As of 18th Nov 2022, Mohit Gupta, Co-founder at the Company resigned
As of 14th Nov 2022, Rahul Ganjoo, Head of New Initiatives resigned
As of 31st Aug 2022, Nitin Savara, Deputy CFO of the Company resigned
FUNDAMENTALS
Sector: E-Commerce/App based Aggregator
Industry: Miscellaneous
1. Market Cap - ₹ 63,915 Cr.
2. Stock P/E -
3. Price to book value - 3.27
4. Debt to equity - 0.03
5. Free Cash Flow - ₹ -750 Cr.
DISCLAIMER - All analyses are for educational purposes. it is not trading or investment advice.
#education #markets #equities #stockmarket #technicalanalysis #stocks #investment #trading #india #finance #fundamentalanalysis #nse #bse #supertrend #education #investing #investments #financialmarkets #learningeveryday #learning #zomato #newedge
Is it a time for new edge companies?
ABOUT
Incorporated in 2010, Zomato Limited is one of the leading online Food Service platforms in terms of the value of food sold. Its offerings include food delivery, dining-out services, Loyalty programs, and others. As of December 31, 2020, Zomato has established a strong footprint across 23 countries with 131,233 active food delivery restaurants, 161,637 active delivery partners, and an average monthly food order of 10.7 million customers.
KEY POINTS
Leading Foodservice platform Zomato Ltd. is one of the leading Food Services platforms in India in terms of the value of food sold. During FY21, 32.1 million average Monthly Active Users visited its platform in India. As of March 31, 2021, Zomato had 389,932 Active Restaurant Listings. Its mobile application is the most downloaded food and drinks application in India in each of the last three fiscal years on iOS App Store and Google Play combined. App gets ~90 billion monthly visits as of FY23 In India, ~248 cities are at contribution break even and as of FY22, Zomato is active in 1000+ cities with 500+ cities added in FY22.
Business segments
Broadly, Zomato operates in three business segments; 1) Food delivery, 2) Dining out, 3) Hyper pure.
1) Food Delivery
There are three key stakeholders in Zomato’s food delivery business – (i) Customers, (ii) Delivery Partners, and (iii) Restaurants. Over the last few years, Zomato has experienced rapid growth in food delivery in India with its orders increasing by 13.2x from 30.6 mn in FY18 to 403.1 mn in FY20, while its Gross Order Value (GOV) grew 8.4x from INR 13,341.4 mn in FY18 to INR 112,209 mn in FY20. As of FY22, Zomato delivered orders worth Rs213Bn across 535.2 million orders, bringing the avg order value to ~Rs398, GOV was Rs213. **As of Q2FY23, Avg monthly transaction was 17.5Mn, Avg monthly active food delivery restaurant partners 2,07,000 and active delivery partners were 3,41,000
2) Dining Out - Customers use Zomato’s dining-out offerings to search and discover restaurants, read and write customer-generated reviews and view and upload photos, book a table and make payments while dining out at restaurants. Zomato currently monetizes its dining-out offering through advertisement sales products through which restaurant partners pay the company for enhanced visibility on its platform. In FY20, 8,064 restaurant partners paid for Zomato’s advertising sales product in India. Revenue decreased 15% YoY in FY22, primarily on account of shut down of most of its international operations and they decided to focus only on the India business
3) Hyper pure Hyper pure is Zomato’s farm-to-fork supplies offering for restaurants in India. Zomato sources fresh, hygienic, quality ingredients and supplies directly from farmers, mills, producers, and processors to supply to its restaurant partners, helping them make their supply chains more effective. As of Q2FY23, 40,000 unique restaurants billed
High Profile Exits
As of 2nd Jan 2023, Gunjan Patidar, Co-founder and Chief Technology Officer resigned
As of 18th Nov 2022, Mohit Gupta, Co-founder at the Company resigned
As of 14th Nov 2022, Rahul Ganjoo, Head of New Initiatives resigned
As of 31st Aug 2022, Nitin Savara, Deputy CFO of the Company resigned
FUNDAMENTALS
Sector: E-Commerce/App based Aggregator
Industry: Miscellaneous
1. Market Cap - ₹ 63,915 Cr.
2. Stock P/E -
3. Price to book value - 3.27
4. Debt to equity - 0.03
5. Free Cash Flow - ₹ -750 Cr.
DISCLAIMER - All analyses are for educational purposes. it is not trading or investment advice.
#education #markets #equities #stockmarket #technicalanalysis #stocks #investment #trading #india #finance #fundamentalanalysis #nse #bse #supertrend #education #investing #investments #financialmarkets #learningeveryday #learning #zomato #newedge