Zomato Success Story From a small food delivery app to a ₹ 9,375 crores IPO
ng home and wanting to eat something in a relaxing mood, Zomato is the name that comes first in mind by which you can order your favorite food from your favorite restaurant in less time.
The name behind this app. Who made things so easy, that brilliant mind was of Dipendra Goyal and Pankaj Chaddah the founder of Zomato.
First, in 2008 it was founded as Foodiebay, later on, on 18th January 2010, it was renamed Zomato, and in 2011 it was changed to Zomato Media Pvt. Ltd.
The food delivery app expanded its business from Delhi to NCR, Ahmedabad, Chennai, Mumbai, Kolkata, Bangalore, and Pune.
Many companies faced severe problems while running their business. Later with an obstacle, they have to shut their business.
In the pandemic in 2020 when most shops are closed or some trying to survive, it is on the road and providing its services and this food delivery app reached new heights.
Food is a basic necessity for everyone and when it comes to a place where we need it, what else do you need?
Deependra Goyal and Pankaj Chaddah give all Indians a perfect solution for waiting in a long queue for food.
After 13 years of its foundation, the food delivery app has released its IPO, hoping to raise 9,375 crores.
So Far, So good
In online food delivery in India, the two big players, Zomato and Swiggy are playing the main role.
There are other players also like Foodpanda, Justeat, TastyKhana, and FoodMingo. But the major company that wins the race between all is Zomato and Swiggy.
About Zomato and how it works
IT is an Indian online food delivery service that provides concrete information, menu, and user reviews of restaurants. The food delivery app also delivers food from the partner’s restaurant in most of cities.
Zomato Founder and team
The brain behind Zomato is Deepinder Goyal and Pankaj Chaddah the founder of Zomato. Both are IIT graduates. Before they launched this food delivery app, they worked with Brain & Co New Delhi.
When it started recruiting teams, its ideology was that they want to hire the correct people, and by this it can give growth to the company. Now they have a very hard-working and intelligent team.
Race for No 1
If we check the leads in the online delivery space, we can see that Swiggy has about 14 million monthly orders.
While Zomato currently in about 10.5 million monthly orders across India and UAE. Other firms like FoodPanda and UberEats both are about 1.2 million and about 1 million monthly orders as per industry estimates.
How was Zomato started?
It was the time when Deepinder Goyal and his friend Pankaj Goel were in an office in New Delhi, they saw that so many people are in line for food and are on the menu to check their favorite food, that time an idea came into their mind to do something that solves this problem.
Then they planned to launch Zomato, formerly known as ‘Foodiebay’. It completed its 13 years on 13 July 2021.
And brand celebrates its Birthday in style on July 10, 2021. Promod Roa, who is VP of marketing has shared his message congratulating the brand along with a jovial video of the brand at work on July 10, 2021, via his Linkedin profile.
Zomato- Startup Launch
First, when they launched their website at that time it was called Foodiebay. later they changed to Zomato. It was initially started in Delhi, and slowly they moved to Mumbai and Kolkata.
They found tremendous user base growth, so they decide it to take internationally. Then they changed the name from Foodiebay to Zomato.
Name, Tagline, and Logo
The founders want to change the name, which is simple and memorized by everyone, so they changed Foodiebay to Zomato.
The food delivery app’s Tag line is “Never have a bad meal”.
Zomato – Business Model and Revenue Model
The main revenue for this food delivery app is from advertisements. This accounts for most of its revenue followed by the commission that it charges to the restaurants. It works on a commission business model.
Funds & Investment
The founder of Zomato wants to make it easier for people to use this service. So, they want to make an application that can be easily used by mobile users.
They make an app that can be used by smartphone users. It captivated Sanjeev Bikhchandani, the founder of Naukri’s interest and he began to invest in the company.
He spent up to $1 million via Info Edge in 2010. Once again Sanjeev Bikhchandani was funded with US$ 3.5 million the next year. The following year total funding was US$10 million poured in from Info Edge.
Growth after 2019
If we see the growth story, the sales increased by 225 percent in the first half of FY2020. As per the company’s biannual survey, we can easily see the sale of $205 million in the first year, up from $63 million the previous year.
If we see the survey, we can see the Zomato’s EBITDA loss decreased by 40% from March to September 2019.
Now the company has stated that Its monthly production rate, by which they calculate how quickly a company loses revenue, has decreased by 60%.
Now the multinational restaurant aggregator claimed that they had increased 177% of restaurant partners after getting an additional 73K restaurants on board.
Now food delivery company has raised about $500 million from established investors.
Zomato is now raising money from both old and new investors as part of the IPO process to create a slush fund of $1 billion.
Till now food delivery company has earned over $2.1 billion. Tiger Global, Kora Capital, D1 Capital, Luxor, Mirae, Fidelity (FMR), Baillie Gifford, and Steadview were among the ten investors that joined the company’s cap table in December 2020.
The food delivery company now says that it will take care of its customer with fresh, hygienic, and high-quality products and services.
Its B2B food technology distribution. Now restaurants too can order fresh fruits, vegetables, and grocery products online from Hyperpure.
Zomaland is India’s Grandest Food and Entertainment Carnival that brings together some of the top eateries, Musicians, DJs, comedians, and interactive installations and carnival games, on a roof.
This event was organized in 2018, This carnival was across Delhi, Bengaluru, and Mumbai, and over 100,000 visitors visit in this debut edition. Since then it has grown to be held in over 10 cities and has also partnered with major brands including the Singapore Tourism Board.
In 12 years of business, The food delivery company has close with 14 companies. The company’s most recent acquisition was Uber Eats-India on Jan 21, 2020. They acquired Uber Eats-India for $206M.
Now Zomato has declared its stake of 9.3% in Grofers as per the latest filing with the Competition Commission of India.
It’s great, now Zomato is listed in the Indian Stock Market on July 23, 2021, as per reports. On Thursday, July 22, 2021, the company allotted its share, where Deepender Goyal has got the highest ESOPs worth Rs,2,800 crores, and 5% shares extra for Zomato separately.
After its big online success, Zomato has thought to start its new reward program called Zomato Piggybank. In this scheme, if you ordered by Zomato with 10% of the order value being credited back into a user’s account as Z coins each time they use an app to order food online.
What is Zomato Tagline?
The tagline is “Never have a bad meal”.
Who is the founder/Owner of Zomato?
Deepinder Goyal and Pankaj Chaddah Were the founders of this food delivery company.
When was Founded?
The Zomato was founded in 2008 by Deepinder Goyal and Pankaj Chaddah at Gurugram, India.
How does this food delivery company make Money?
This Indian multinational restaurant aggregator makes money by the advertisement channel that the portal offers to display.
The most of revenue is collected, by the commission of restaurants. It works on a commission Business Model.