Bengaluru: Revenues at Zomato Media Pvt. Ltd doubled to Rs399 crore in the year ended 31 March 2017, even as the restaurant discovery and online food delivery start-up reduced its losses.

Net loss at Zomato fell to Rs389 crore in the year ended 31 March 2017 from Rs590 crore in the previous year, according to its financial statements available with Tofler, a business information provider.

Zomato, which is present in 23 countries, earns revenues from advertising and food delivery.

In 2016-17, Zomato, a late entrant into the food ordering and delivery business, expanded the business to try and catch up with rival Swiggy (Bundl Technologies Pvt. Ltd). It shut operations in nine countries in 2016, managing the markets from India, as it sought to reduce costs. Zomato also cut jobs and salary increments for employees in that year.

According to the financial statements, Zomato co-founder chief executive Deepinder Goyal waived his remuneration and co-founder Pankaj Chaddah, who left the company earlier this month, reduced his remuneration by half to Rs35 lakh from October 2015.

The online food delivery initiatives helped Zomato boost revenues and the cash-burn reduction efforts led to a fall in losses in 2016-17.

Now, Zomato is looking to expand, as the online food delivery sector—written off not too long ago—has seen a revival over the past six months. While Zomato and Swiggy have raised large funding rounds, cab-hailing firms Uber and Ola, attracted by the runaway expansion of Swiggy, are investing hundreds of crores of rupees to gain a slice of the market.

Bengaluru-based Swiggy leads the food-delivery stack with a 35-38% market share, followed by Zomato at 25-30%, according to RedSeer Consulting, an internet-focussed consulting firm in India.

UberEats, the food delivery business of Uber Technologies Inc. that was already operational in several countries, entered the segment in India last year.

Uber’s local rival Ola (ANI Technologies Pvt. Ltd), which had shut its food delivery business of Ola Cafe in 2016, re-entered the space by acquiring FoodPanda’s India operations in December.

Ola has said it would invest $200 million to expand the business.

Last month, Zomato raised $200 million from Ant Small and Micro Financial Services Group, valuing the food-tech start-up at about $1.1 billion. The funding included a $50 million secondary share sale by Zomato’s key shareholder Info Edge (India) Ltd to Ant Financial, which is the payments business connected with China’s largest e-commerce firm Alibaba Group Holding Ltd.

In February 2018, Swiggy raised $100 million from Naspers.

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