There’s more good news for Indian foodtech unicorn Zomato. As per reports, NYC-headquartered equity research firm Jefferies has marked up Zomato’s valuation from $500 Mn in July 2016 to $865 Mn.
According to sources, Zomato’s growing foothold in the country’s online food delivery industry, together with its aggressive pricing strategy and recent fundraise, have contributed to the valuation markup.
In its report, Jefferies ascribed a value of $470 Mn to the Gurugram-based foodtech giant’s advertisement business. The online food ordering arm of Zomato, on the other hand, is estimated to be worth $395 Mn.
The report read, “Strong momentum is Zomato’s delivery business — consolidation driven by aggressive pricing strategy — will be a key trigger for driving the overall business.”
As per the report, if the current growth rate continues, Zomato will likely lower its losses by 9.7% to $14 Mn (INR 91.1 Cr) in the fiscal year ending in March 2018. During FY18, the company is also expected to see a two-fold increase in revenues to $25.4 Mn INR 164.4 Cr), the report by Jefferies stated.
Commenting on the development, a spokesperson from Zomato added, “We have never subscribed to the valuation game. We are focused on our work and on creating value for our users.”