By Mr. Abhay Ray 
Introduction to Zomato Limited
Zomato is an Indian multinational restaurant aggregator and food delivery company. It was founded by Deepinder Goyal and Pankaj Chaddah in 2008.Zomato’s app allows users to browse a wide selection of restaurants, order food, check ratings and read customer reviews. The platform also provides information about restaurants operating hours, addresses, contact details and more. The Company’s technology platform connects customers, restaurant partners and delivery partners, other intermediaries such as call center operators serving their multiple needs. Customers use the platform to search/discover restaurants, read/write reviews, upload photos, order food, book tables and make payments while dining-out.
Incorporation of Zomato
Zomato was founded as FoodieBay in 2008 by Deepinder Goyal and Pankaj Chaddah who worked for Bain & Company. The website started as a restaurant-listing-and-recommendation portal. They renamed the company Zomato in 2010. Zomato has been aggressively expanding its reach across India, adding new cities and partnering with more restaurants. This growth strategy has attracted investors who believe in the company’s potential to capture a larger share of the Indian food delivery market.
Mission and Vision of Zomato
Mission:
The mission of Zomato is to provide better food for more people.
Vision:
Zomato states that the vision of Zomato is to be the global platform when someone is looking for food locally.
Zomato’s Founder Details
The founders of Zomato are Deepinder Goyal and Pankaj Chaddah.
- Deepinder Goyal holds an integrated Master’s degree of technology in Mathematics and computing from the IIT Delhi. After completing his graduation, Goyal was hired by Bain and Company, where he served as a senior associate consultant for a little less than 4 years, after which he found Zomato.
- Pankaj Chaddah is a BTech, mechanical engineering graduate from IIT Delhi. Pankaj Chaddah completed his graduation and then went to join Bain and Company, where he served two and a half years before joining Deepinder Goyal to found Zomato. However, he resigned from Zomato in May 2018.
- Akriti Chopra, one of the employees of Zomato, has been promoted to the co-founder position. Prior to joining Zomato, she worked with PwC for three years in the Tax & Regulatory practice. She holds a bachelor’s degree course in commerce from Lady Sri Ram College, Delhi University and is an associate member of the Institute of Chartered Accountants of India.
Products and Services of Zomato Limited
- Zomato Wings: Linking Restaurants and Investors
- Zomato AI – Revolutionizing Food Discovery
- Zomato Future Foundation
- Zomato’s Hyperpure
- Zomato Gold
- Zomaland
- Blinkit
- Xtreme
IPO Details of Zomato
The IPO opened on July 14, 2021 and closed on July 16, 2021. The listing exchange was the Mumbai NSE. Zomato’s IPO was launched with a price band of ₹72 to ₹76 per share, hitting the Indian market on July 23, 2021, at a premium of 51% at ₹115 per share. The total size of the IPO was ₹9,375 crore, out of which ₹9,000 crore was the fresh issue, and the remaining ₹375 crore was an Offer for Sale.
Zomato Funding Details
List of all funding rounds and investors is given below :
|
Date |
Stage | Amount | Investor |
|
March 6, 2024 |
Post-IPO Secondary | $341.5 million | – |
| November 28, 2023 | Post-IPO Secondary |
₹ 3,336 crore |
– |
| August 30, 2023 |
Post-IPO Secondary |
₹ 947 crore |
– |
|
November 30, 2022 |
Post-IPO Secondary | ₹ 607.60 crore | Camas Investments |
| August 3, 2022 | Post-IPO Secondary | $392 million |
– |
|
February, 2021 |
Venture Round | $250 million | Kora, Tiger Global, Fidelity |
| December, 2020 | Series J | $660 million |
Kora, Tiger Global Management |
|
November, 2020 |
Series J | – | – |
| October, 2020 | Series J | $52 million |
Kora |
|
September, 2020 |
Series J | $166 million | Tiger Global |
| April, 2020 | Series J | $5 million |
Baillie Gifford |
|
January, 2020 |
Corporate Round | $150 million | Ant Financial |
| March, 2019 | Corporate Round | $55 million |
Delivery Hero |
|
February, 2019 |
Series J | $35 million | Glade Brook Capital Partners |
| October, 2018 | Series J | $210 million |
Ant Financial |
|
February, 2018 |
Series I | $200 million | Ant Financial |
| April, 2017 | Series H | $20 million |
Sequoia Capital India |
|
September, 2015 |
Series G | $60 million | Temasek Holdings, Vy Capital |
| April, 2015 | Series F | $50 million |
Info Edge, Vy Capital |
|
November, 2014 |
Series E | $60 million | Info Edge, Vy Capital |
| November, 2013 | Series D | $37 million |
Info Edge, Sequoia Capital |
|
February, 2013 |
Series C | $10 million | Info Edge |
| September, 2012 | Series B | $2.3 million |
Info Edge |
|
September, 2011 |
Series A | $3.5 million |
– |
Acquisition of Zomato
Zomato acquired 16 companies –
Zomato acquired Paytm – Entertainment Ticketing Business on August 21, 2024; croreblinkit on June 24, 2022,;FITSO on January 20, 2021;Uber Eats India on January 21, 2020; Tonguestun Food Network Pvt Limited on September 5, 2018; Runnr on June 6, 2017; Sparse Labs on September 26, 2016; Nextable on April 22, 2015; MapleGraph Solutions Private Limited on April 14, 2015; Mekanist on January 29, 2015; Urbanspoon on January 12, 2015; Cibando on December 2014; gastronauci.pl on September 2014; Lunchtime on August 2014; Obedovat on August 2014; MenuMania on July 2014.
Financials of Zomato
|
Financials |
Operating Revenue | Net Profit |
| Q1FY24 | INR 2416 crore |
INR 2 crore |
|
Q2FY24 |
INR 2848 crore | INR 36 crore |
| Q3FY24 | INR 3288 crore |
INR 138 crore |
|
Q4FY24 |
INR 3562 crore | INR 175 crore |
| Q1FY25 | INR 4206 crore |
INR 253 crore |
Zomato – Growth and Revenue
Zomato’s revenue for the fiscal year ending March 2024 was ₹ 12,114 crore, a 71% increase from the previous year. The company’s net profit was ₹ 351 crore, compared to a loss of ₹ 971 crore in FY23. On October 22, 2024 zomato reported a consolidated net profit of ₹176 crore in the second quarter ended on September 30, 2024.
Zomato – Awards and Recognitions
Zomato has won a range of prestigious awards throughout the years. The food tech giant even bagged the top honors at the seventh edition of The Economic Times Startup Awards, including the Startup of the Year award in 2021.
Zomato – Competitors
The direct competitor of Zomato is Swiggy. Zomato and Swiggy are considered to be the dominant players in the Indian food delivery market, creating a duopoly. Food delivery platforms like Zomato and Swiggy use AI to understand user sentiments and grow their user base.
Conclusion
In conclusion, Zomato demonstrates its capacity to adapt and innovate in the ever-changing meal delivery sector. Zomato has redefined food delivery, expanded globally. Strategic alliances, acquisitions, technology improvements, and a successful initial public offering have all led to its dominance.Zomato’s success can be attributed to its innovative business model, its focus on customer experience, and its ability to adapt to changing market conditions.The food delivery industry continues to grow and evolve, Zomato is well-positioned to continue its success and expand its reach into new markets.
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