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Zomato enters Philippines, break-even in Dubai, expects 5-6% revenue from foreign operations

By Saumya Tewari

By Saumya Tewari

After raising fresh round of Rs 55 crore of investment from Info Edge last
month, Zomato has announced its expansion to South East Asia. The company has
entered Philippines, launching its Metro Manila section. The sector will cover
restaurants in cities of Quezon, Manila, Makati, Mandaluyong, Paranaque, Pasay,
Pasig, Pateros, San Juan, and Taguig.

The information will be available on Zomato’s website as well as mobile
applications across platforms (iOS, Android, Windows and Blackberry).

Speaking to India Digital Review, Deepinder Goyal, Founder and CEO of Zomato
explained why company chose Philippines as its next destination for expansion,
“We wanted to expand into South East Asia as it is a big market for a product
like ours. The choice for our next market launch was between the Philippines
and Bangkok. However, we found the Philippines to be a bigger market and since
Zomato is currently available only in English, we decided to go with the
Philippines first. We are planning to launch a Thai version of our site
shortly, following which we plan to launch in Bangkok as well.”

Talking about the competition in the country, Deepinder said there are few
websites that have just started up and Zomato is in talks with them to see if
we can work together.

“However, they are in their nascent stages and we wouldn’t call them
competition,” he added.

Headquartered in New Delhi, Zomato began its international expansion with
the Middle East market, launching its Dubai section in September 2012, and has
quickly expanded to UAE, UK, Qatar and Sri Lanka.

Giving an insight in the amount of revenue coming from company’s foreign
operations Deepinder informed, “Zomato is currently present in 13 cities in
India and five countries besides India. It is still early days to say anything
about our performance in all countries except Dubai. We are expecting about
5-6% of our total revenue to come from our foreign operations this year. Our
Indian operations reached EBITDA break even in December 2012 and we have
already broken even with our operational costs in Dubai in a short span of only
six months since our launch there.”

The company will soon be launching a section for South Africa and then
expanding operations into Europe, West Asia, South America and other parts of
South-East Asia in 2013. Back home, Zomato is all set to launch sections for
Guwahati and Cochin in the next couple of months.

Founded by Deepinder Goyal and Pankaj Chaddah in July 2008 for restaurants
in New Delhi, Zomato has expanded its services to 20 cities across 6 countries,
covering over 80,000 restaurants.

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