The move is in line with the company’s recent launch of a dedicated tab in the Zomato app that helps users discover and engage with highly anticipated events across cities.
Speaking to Mint, Zomato Live CEO Zeenah Vilcassim outlined the company’s growth trajectory and its goal of making a substantial double-digit contribution to Zomato’s top line within three years.
Currently, Zomato Live contributes a single-digit percentage to Zomato’s total revenue. “If you look at the scale and the size of the business that we have with online ordering now and BlinkIt, even low double digits is still huge as a business. That’s the goal we’re working toward, and we’re going to release some of those numbers.” when they show up,” she said.
Launched in 2018, Zomato Live initially focused on the Zomaland IP, a food carnival and music festival that has now expanded to eight cities. It has attracted approximately 200,000 customers with its holistic experience of food, entertainment and music.
Vilcassim emphasized the synergy between Zomato Live and the core Zomato business, particularly in leveraging the parent’s search and discovery capabilities. The live events industry, which is booming after covid, is predicted to hit $8 billion by 2028 from just under $5 billion today. Zomato Live aims to become India’s leading live entertainment company, focusing on superior curation, customer experience and operations, Vilcassim said.
“The opportunity here is really huge also because consumer expectation, especially for live events, has grown massively in India. People are paying higher prices for tickets, and they expect an amazing production,” said the CEO.
The industry has to evolve with that consumer mindset, she said, adding, “So when it comes to access to venues, restaurant partner areas, the best technology and developers in the country in addition to being a very, very agile operations company, it was a no-brainer almost that we should do this side of business. Also, because there are many synergies that can go back to the core business.”
To capture the growing appetite for live events, Zomato Live aims to offer premium experiences and generate revenue through ticketing and sponsorships. The company has launched a new events tab in the Zomato app, offering a curated selection of premium events, including festivals, concerts and tours.
This feature, distinguished by a premium UI, will soon expand to 12 major cities, starting with a special New Year’s Eve showcase. The tab will have “the best events you can book for New Year’s Eve with great content, video content and everything that goes through a nice search and discovery element,” she added.
Reflecting on Zomato’s profitability milestone with Zomaland, Vilcassim emphasized a strategic focus on developing sustainable IPs. Zomato Live recognizes market dynamics and aims to diversify its event offerings to mitigate risks and provide a mix of large-scale and smaller events.
“We’ll also be announcing some new IPs and gigs we have coming up, including four more left of Zomaland. We’re also looking at more premium stuff in the sneaker space, we’re doing a collaboration with Mainstreet that’s already been talked about a bit and coming out. We’re working with them on their Indian Sneaker Convention. We have a big comedy act coming up, two big artist tours coming up and another IP we’ll be launching later in the year,” she added.
Highlighting the evolving dynamics of the market, Vilcassim said that there is a sense of fatigue stemming from the proliferation of many IPs and constant launches in the live events. In response to this market sentiment, she outlined a strategic approach that relies on clarity, focusing on discerning the significant bets that will define Zomato Live’s trajectory.
“Our strategy extends to the diversification of our event portfolio, ensuring that our profitability is not solely dependent on the success of IP creation and curation,” she said.
Recognizing the time-intensive nature of building IPs, the company recognizes the need for a balanced approach that includes large-scale productions with famous artists that attract large crowds and show favorable profit and loss, along with cost-effective events. The approach is to look at the live events from a business perspective, she said.
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Published: 22 Dec 2023, 15:06 IST