Management in attendance: Deepinder Goyal and Senior Team
Deeksha Janiani takes a deep dive into the financials and future strategy of India's new-age listed startup companies, Paytm, Zomato, Nykaa and PBFintech (Policybazaar). Watch the full discussion.
Conference Call with Zomato Management and Analysts on Zomato's Performance, Strategy and Outlook. Listen to the full transcript.
Management in attendance: Co-founder Gaurav Gupta and CFO Akshant Goyal
Zomato's IPO issue opens on 14th July.
Key Management Observations:
"Our competition is home-cooked food," Co-founder Gaurav Gupta says, "ordering from restaurants is deeply under-penetrated in India, compared to US and China."
Zomato is not yet profitable, despite a 2x increase in delivery charges. However the management believes that it has already shown that it is 'contribution positive' (ie positive in revenue - variable costs)
Over time, management says that it is building the kind of scale that will allow revenue to grow faster than fixed costs, allowing it to eventually become profitable. "Profitability is a function of all our various businesses becoming profitable, not just a single business like restaurant delivery," CFO Akshant Goyal said. "We are getting into other verticals like Hyperpure, and potentially grocery delivery as well."
Zomato is taking a minority stake in Grofers of 9%, indicating that it is bullish on the grocery business opportunity.
