Beating other food technology firms on the road to profitability, online restaurant search and food-ordering company Zomato has operationally broken even in India, and is on track to make a profit as early as June next year.
Zomato seeks $200 million in funding in an increasingly tough environment for start-ups. The company said it had hit operational break-even in India, Indonesia, UAE and 3 other markets in the Southeast Asia and Middle East. Together, they account for the three-fourths of the company's revenue.
In April, Zomato is set to start its $200 million funding round, and is in discussions with Chinese internet conglomerates Baidu Inc. and Alibaba Group.
The company has operations in seventeen other countries including the US, Australia and UK, and has so far raised $225 million from investors including Info Edge, Temasek and Sequoia.
It must be noted that India's consumer internet startups have drawn billions of dollars in venture capital funding in the last couple of years on the prospects of increasing internet penetration and rising income levels in a county of 1.2 billion people.
However, last year, India's food-tech industry saw a series of mass lay-offs with Rocket Internet backed-Foodpanda and Nexus Ventures-backed TinyOwl restructuring operations after expanding too fast.