This is why we can’t have nice things. Zomato has said that it’ll take down a hilarious hoarding that was part of its new marketing
The murmurs in entrepreneur circles about funding slowdown is still persistent. There are talks about bursting the startup bubble. The flames of uncertainty is still recurring, on top with the change of dynamics in startup ecosystem. However, when the country’s economic growth and purchasing power of people are on synchronized rise, there can be no dearth of funding. 2015 was a very good year, and 2016 is for taking things slow. But there is no stopping for the VC companies. Read our list of the top 10 most funded startups and get a dose of motivation for free!
2016 might’ve been a seminal year for Zomato as it entered the food ordering business, but the move has come with a price. The company’s losses have more than trebled to Rs. 492 crore for the year ending March 2016.
A long time Zomato user Prateek Dham claims that Zomato’s review system is corrupt. He went public yesterday with detailed Facebook status that purports to expose Zomato’s method of monetizing with paid reviews. However, Zomato hasn’t taken kindly to this user’s claims and in an unlikely move, have responded to each allegation the user has made in a public blogpost.
After reports that HSBC had slashed Zomato’s valuation by 50%, valuing it at just $500 million, Zomato CEO Deepinder Goyal wasted no time in clearing the air. In an email sent this morning to Zomato’s global employees, Goyal talks about Zomato’s numbers, points out how HSBC’s report might have overlooked certain aspects, and urges his team to “get back to work.”
It’s the season of markdowns. After Flipkart has seen its valuation being marked down by as many as 4 separate investors, HSBC has valued Zomato at about $500 million, a full $500 million short of the $1 billion valuation at which it had raised funds last year.
Zomato is on course to double its revenue in the fiscal year ending March 31st. The company is also all set to become break even at the operational level – meaning it won’t make losses anymore on individual orders – by mid 2016. Zomato will be the first of the Indian unicorns to reach the milestone.