Zomato to set up 20 warehouses by 2020

April 30, 2019: Zomato, online food ordering app is planning to invest around Rs 56 crore to set up 20 more warehouses across the country by the end of 2020 under its online business-to-business (B2B) food ingredient ordering platform, Hyperpure.

With setting up of warehouses across 18 cities, the company is targeting a combined capacity of 90,000 metric tonnes (MT) and 700,000 square feet by 2020.

The 40,000 square feet Delhi warehouse is designed to supply 5,000 MT capacity per month and equipped to serve 3,000 restaurants every day. Currently, Hyperpure services 1,000 restaurants in Bengaluru.

The Gurugram-headquartered firm had acquired Hyperpure in 2018 and since then, Zomato has added two warehouses that act as delivery hubs, first in Bengaluru and now in Delhi. Each warehouse has been set up with an approximate initial investment of $400,000.

Zomato's move to increase investments in such businesses comes even as it looks to rapidly increase its presence across markets. In fiscal year (FY) 2019, it increased its presence in more than 200 cities in India, up from 15 cities in FY18, with more than 100,000 restaurants listed on its platform. Zomato's revenue jumped from $68 million in FY18 to $206 million in FY19, primarily driven by its delivery vertical, according to the company's annual report released in April.

The firm has been building businesses inorganically through a clutch of acquisitions, including drone-delivery startup TechEagle Innovations and Bengaluru-based TongueStun Food, an aggregator of caterers and restaurants for office canteens.