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Zomato to invest $40 million in food-ordering business

  • Restaurant search and
    review website Zomato Media will shell out $40 million in its nascent
    food-ordering business in the next six months to capture a dominant chunk of
    the market in India,
    and the United Arab Emirates (UAE), the
    Mint
    reported.
  •  
  • The company, which
    • Restaurant search and
      review website Zomato Media will shell out $40 million in its nascent
      food-ordering business in the next six months to capture a dominant chunk of
      the market in India,
      and the United Arab Emirates (UAE), the
      Mint
      reported.
    •  
    • The company, which
      started a food-ordering service only in May, will spend the money on marketing
      and logistics.
    •  
    • “We do not require
      much cash for the existing business and can dedicate maximum money towards
      building this new business,” Zomato co-founder Deepinder Goyal said.
    •  
    • The Gurgaon-based
      firm, which has spent Rs.1.2 crore on its latest television campaign, expects
      the food-ordering business to operationally break even by March. The company
      has already invested in early-stage food-delivery firm Grab, run by Grub
      Services Pvt Ltd.
    •  
    • According to Goyal,
      the company will continue to focus on keeping customer acquisition costs low
      and stay away from the discounting war that has largely been responsible for
      early consolidation in the food tech sector in the country.
    •  
    • Zomato’s primary
      revenue source is advertising. The company has since expanded into online food
      ordering, table reservation and a white-label platform that allows restaurants
      to create their individual apps.
    •  
    • The firm, which is
      close to touching a revenue of $3.2 million in December, is targeting a revenue
      of about $5 million in March.

     

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