Foodpanda’s yearly loss widens four-fold to Rs143 crore
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New Delhi: Foodpanda India, an online marketplace for food delivery, on Friday reported a nearly four-fold widening of loss to Rs142.6 crore for 2015-16 on account of higher investments in technology, delivery and marketing. The company had logged a loss of Rs36 crore in 2014-15, the Rocket Internet-backed Foodpanda said in a statement.
“The losses are on account of higher investments in technology, delivery and marketing. We are running our services at operational profitability since February 2015,” a company spokesperson said.
However, the company’s revenue rose around eight-fold to Rs37.81 crore as against Rs4.7 crore in 2014-15, the company said. The revenue growth can be attributed to strong order growth in key markets and increase in commission. With continued focus on achieving 100% automation, the aim is to turn profitable by 2018-19, Foodpanda said.
“We are extremely happy with our performance in 2015-16. We have not only registered 800 per cent growth, but also become operationally profitable in both our business lines - marketplace and delivery,” Saurabh Kochhar, Foodpanda India co-founder and CEO said.
This furthers the company’s position as pioneer and market leader in the online food delivery space, he claimed. At present, 40 % of the orders are delivered by Foodpanda delivery services and the rest 60% by restaurants. This is a jump from December 2015 when only 25% of the orders were delivered by Foodpanda delivery services, the company said.