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Zomato eyes expanding to 20 warehouses by 2020 for restaurant supplies business

FE Online

Swiggy’s arch-rival and food ordering cum discovery platform Zomato will be expanding its number of warehouses from existing two — in Delhi and Bengaluru — to 18 by end of 2020 for Hyperpure — its B2B arm to supply food ingredients to restaurants.

“With plans to launch 20 more warehouses by the end of 2020, we want to create a dependable demand-supply cycle of clean ingredients, for a future where everybody is eating quality food,” said Gaurav Gupta, Co-founder and COO, Zomato.

The warehouses planned will be launched in 18 cities including Mumbai, Pune, Chennai, Hyderabad, Ahmedabad, Kochi etc., with a combined targeted capacity of 90,000 MT and 700,000 sq. ft, the company said in a statement.

Zomato’s Delhi warehouse was launched on Monday that’s spread across 40,000 sq. ft and designed to supply 5,000 metric ton capacity per month. The warehouse is capable to serve 3,000 restaurants per day.

Zomato is aiming to foray the Hyperpure warehouses in international markets, Dhruv Sawhney, Founder, Hyperpure told PTI. The company is looking to invest around Rs 56 crore for setting up 20 warehouses.

The company will be launching another two warehouses in Delhi that would give Hyperpure access to more than 35,000 restaurants listed in NCR on Zomato.

In its recently revealed annual report for FY19 Zomato said that its total cost increased from $80 million (Rs 560 crore) in FY18 to $500 million (Rs 3,500) in last financial year. Zomato s losses for FY19 stood at $294 million (Rs 2,058), most of which came from its food delivery business in India.

Zomato also reported more than 3X growth in its revenue from $68 million in FY18 to $206 million in FY19. The delivery business had a maximum contribution of $155 million to its revenue followed by $49 million coming from its dining out vertical and $2 million from its sustainability business.

Hyperpure is part of its sustainability business was launched in August 2018. Zomato provides information of more than 1.4 million restaurants from 24 countries globally even as and it serves over 65 million users per month.