Ola-owned food delivery business Foodpanda has recorded a loss of INR 756.42 Cr in the financial year 2019. In 2018, the losses for the food delivery startup stood at INR 227.95 Cr.
According to the Ministry of Corporate Affairs filling, accessed by business intelligence company Tofler, Foodpanda has also managed to increase its operational income by 12.2%, amounting to INR 81.77 Cr in FY19 from the INR 72.84 Cr in FY18.
Tofler CEO Anchal Agarwal added that Foodpanda’s burn rate of INR 756.42 Cr over INR 81.77 Cr of revenues is one of the highest among Indian startups. Agarwal also added that the significant increase in the company’s losses are due to the high discounts and delivery charges Foodpanda had to incur.
In the financial year 2019, Foodpanda spent INR 267 Cr on food delivery, even though its operational revenue was INR 81.77 Cr. On the other hand, the company gave discounts worth INR 137 Cr.
However, Foodpanda is positive about its future. The company, in the regulatory filing, added that the online food ordering market is a multi-billion industry and it has massive room for growth.
The company added, “We [Foodpanda] being an early player in the online food ordering and processing market have a deep understanding of the market dynamics and the revenue and profitability levers.”
Foodpanda also added that the company has built a “state-of-the-art” kitchen infrastructure. In addition, it also launched various brands in different food and beverage sections —The Khichdi Experiment, FLRT and HolaChef.
Homegrown cab aggregator Ola acquired a 100% stake in Foodpanda India from Germany-based Delivery Hero Group for $31.7 Mn (INR 202 Cr) in the third week of December 2017. With this Ola marked its return into the food delivery business after the company shut down Ola Cafe in March 2016. Post the acquisition, Ola was reportedly eyeing the grocery delivery space, like Ola Store, with the help of Foodpanda’s 125K strong food delivery fleet.
Media reports suggest that Amazon’s grocery delivery vertical, Prime Now, is looking to partner with Foodpanda to venture into the food delivery business. The reports add that the partnership might lead to acquisition as well.