MANAGEMENT’S DISCUSSION AND

ANALYSIS OF RESULTS OF
OPERATIONS
SARTHAK KHURANA
PIUS PINTO S 2027624
Principal Factors Affecting our Financial Condition and
Results of Operation
Customer base and restaurant listing
• Our business depends on our ability to maintain and grow our customer base as well as our
restaurant partner base. Any failure to attract new restaurants and customers to our platform or
retain existing restaurants and customers, could adversely impact our financial condition and
results of operations. In addition, any failure by our restaurant partners to provide the expected
service level or any significant changes to their pricing or operating costs could also impact our
operations.

• During the last month of the Fiscals 2018, 2019 and 2020, active Food Delivery Restaurants were
33,192, 94,286, 143,089 and 132,769, and average MTU on our platform were 0.9 million, 5.6
million, 10.7 million and 5.8 million
Number of Orders, AOV and commission
the number of orders placed on the platform is largely driven by our base of customers, restaurant
partners and delivery partners, our brand awareness among customers in the market and our
platform. The number of orders is also subject to seasonal fluctuations and they tend to be
generally higher when customers may be less likely to dine-out as a result of unfavorable weather or
during certain festival seasons and holidays when customers are more likely to order food for
delivery.

AOV is a function of the price of food at restaurants and the number of people the food is being
ordered for
• AOV has increased steadily over the last seven quarters.

Orders have grown from 30.6 million for Fiscal 2018 to 403.1 million for Fiscal 2020. Our GOV has
increased from ₹13,341.4 million in Fiscal 2018 to ₹112,209.0 million in Fiscal 2020.

Restaurant partners pay us a pre-agreed commission for each completed order which is a function of
the perceived value of our offering to restaurants
Cost-effectiveness of the platform
• advertisement and sales promotion expenses primarily include (i) platform funded discounts (to
the extent not netted off revenue) (ii) marketing and branding costs (c) customer appeasement
costs and (d) refunds made to restaurant partners
• Delivery costs
Payouts to our delivery partners include customer delivery charges that we collect from customers
which is passed to the
delivery partner (not recognized as a revenue or cost in our financials) and an availability fee. The
amount paid as availability
fee to the delivery partner is reported as part of “outsourced support costs” in our statement of
profit and loss. Our cost
effectiveness depends on our ability to continue reducing delivery costs on a per order basis.
• Technology costs
• Our ability to provide a cost-effective platform also depends on our ability to constantly improve the
efficiency and
• sophistication of our technology infrastructure in order to be able to adapt and further expand our
platform to cater to
• other services and business offerings, in line with our strategic initiatives and priorities
THANK YOU