Zomato to invest $2 mn for expansion in FY 14
Gurgaon: Online restaurant guide Zomato Friday said it will invest USD 2 million (around Rs 11 crore) to expand its operations in the country and overseas.
"The total capex for expansion will be USD 2 million in the next financial year. We will be starting our operations in eight countries in next fiscal year," Zomato Founder and CEO Deepinder Goyal said.
Additional investments of up to USD 5 million will be required to break even in these markets, he added.
"We are targeting the countries in the Middle East and Europe for the next phase of growth. We will be opening shortly in Turkey and Qatar," Goyal said.
Within the country, it plans presence in Goa, Guwahati, Shillong and Kochi in FY'14, he added.
Goyal was speaking on the sidelines of restaurant summit here.
On funding of the expansion plans, Goyal said: "It will be done through internal accruals. We already have a significant chunk of funds left from our last round of funding of USD 2.5 million."
Over the years Zomato has raised USD 6.5 million of investment from Info Edge India and is currently present in 12 cities across the country apart from offices in United Arab Emirates (Dubai, Abu Dhabi and Sharjah) , Sri Lanka and UK.
"The company also plans to raise its employees strength significantly in next six months," Goyal said.
The company at present provides detailed information about restaurants to over nine million users across its web and mobile platforms every month, Zomato said.