That is absolutely right. Zomato, one of India’s foremost food delivery start-up companies, actually doubled its revenues in the fiscal year 2019-20 to $394 million. However, the net loss marginally widened to $293 million from $277 million last year. Post March, COVID-19 lockdown has severely impacted the food delivery business in India.

In fact, Zomato has admitted that after the rise of COVID-19 cases in India, their food delivery gross merchandise value or GMV hit its nadir in the last 2 years as the GMV dipped by nearly 8% from the median levels. In the midst of the lockdown, most restaurants were forcibly shut down and hence the delivery model became untenable.

However, the good news is that the GMV has picked up in July to 60% of its median levels. Zomato has gained market share in the food business post the acquisition of Uber Eats in January 2020. Zomato saw its average GMT double to $1.49 billion in FY20 as compared to the previous fiscal year. A more complete recovery is expected in 6 months time.

However, Zomato has had some positives from COVID-19. Monthly burn rate has fallen below $1 million, which should make the recovery in revenues and profits much easier for Zomato. The start-up also admitted that many young professionals had migrated back to their parental homes from their workplaces and that had also constricted demand.