Humble Beginnings: A Simple Idea at Bain & Company
Zomato’s journey began in 2008, rooted in a simple yet revolutionary idea. Deepinder Goyal, fresh out of IIT Delhi and working at Bain & Company, noticed a challenge with food ordering. Employees relied on a shared catalog of restaurant menus, which was inconvenient and inefficient. Determined to make life easier, Goyal scanned the menus and uploaded them to the company’s intranet. This innovation was well received, and Goyal realized its potential beyond Bain’s walls.
Six months later, during a 10-day break between projects, Goyal took his idea to a larger audience. What began as a digital menu repository called FoodieBay eventually evolved into Zomato—a name now synonymous with food delivery in India.
The Leap from Menus to Unicorn
Zomato started as a simple website featuring scanned restaurant menus. It rapidly gained traction and expanded to other cities, laying the foundation for a business model that would redefine India’s food culture. The company’s big break came when Sanjeev Bikhchandani, founder of Info Edge (Naukri.com), offered Zomato its first round of funding.
This $1 million investment for a 33% stake was finalized in just eight minutes. Deepinder recalls, “The company was worthless at that time. Someone offering a million dollars felt surreal.” This funding allowed Zomato to expand its operations and build a robust platform.
Changing the Way India Eats
Zomato’s growth wasn’t just about funding; it was about a vision. The platform didn’t merely adapt to changing food habits; it shaped them. Ordering food shifted from an occasional indulgence to an everyday convenience. With over 1.4 million listed restaurants, 12,000 restaurant partners, and 285,000 delivery partners across 1,000+ cities, Zomato has truly transformed the dining landscape.
During the COVID-19 pandemic, Zomato became a lifeline for millions, ensuring uninterrupted food delivery despite unprecedented challenges. Its order volumes surged as more people embraced online food delivery.
The IPO That Made Headlines
On July 23, 2021, Zomato made history by becoming India’s first unicorn to go public. The company was listed with a valuation of $13.3 billion at an issue price of ₹76 per share. The IPO was oversubscribed 38 times, reflecting immense investor confidence.
Although Zomato’s stock price experienced fluctuations, the listing marked a significant milestone in its journey. It showcased the company’s ability to lead in an industry it had helped create.
Beyond Profits: A Culture of Innovation
Zomato isn’t a profit-making company yet, but its founder isn’t overly concerned. “I’m not in it for the money,” says Goyal. For him, the journey is about revolutionizing food delivery, not short-term gains.
The company thrives on a unique culture where employees work with a sense of ownership and innovation. Deepinder describes Zomato as a “school,” emphasizing constant learning and growth. Decisions aren’t driven by rigid processes but by a shared vision of greatness.
Net Profit and Revenue Growth
Zomato has achieved significant financial milestones recently:
- Net Profit Growth: A 389% rise in consolidated net profit for the July-September quarter of FY25, reaching ₹176 crore compared to ₹36 crore a year ago.
- Revenue Growth: Revenue for the same quarter increased by 68% year-on-year, amounting to ₹4,799 crore.
- Quarterly Performance: In Q1 FY25, net profit surged to ₹253 crore from ₹2 crore a year earlier, while revenue jumped 74% year-on-year to ₹4,206 crore.
- Gross Order Value (GOV): GOV grew by 53% year-on-year to ₹15,455 crore in Q1 FY25, compared to ₹10,084 crore in the previous year.
A Data-Driven Approach
Innovation at Zomato extends beyond food delivery. The company introduced Zomato Food Trends, a data analytics platform that helps restaurants make informed decisions. By analyzing customer preferences and supply-demand trends, the platform enables restaurants to optimize menus and pricing strategies.
Embracing Technology and Sustainability
Technology has been at the heart of Zomato’s success. The platform continuously improves to provide seamless experiences for users, restaurant partners, and delivery executives. Goyal stresses the importance of leveraging cutting-edge technology to stay ahead in a competitive market.
Zomato also prioritizes sustainability. The company has launched initiatives to reduce its environmental footprint, reflecting its commitment to responsible business practices.
Engaging Marketing Campaigns
Zomato has distinguished itself with highly engaging and innovative advertising and social media campaigns. Leveraging platforms like Instagram, Facebook, and Twitter, Zomato creates content that resonates with its audience, often using humor and relatable scenarios to connect with users.
Key campaigns include:
- #ZomatoGold: Promoting loyalty programs with exclusive offers.
- Zomato Market: Addressing urgent consumer needs during the COVID-19 pandemic by delivering groceries.
- Creative Collaborations: Partnering with brands like Crocs for unique promotions.
By combining SEO, paid advertising, and influencer partnerships, Zomato has built a strong online presence, engaging millions and driving significant brand loyalty.
Standing Out in a Competitive Market
Zomato distinguishes itself from competitors through:
- Extensive Restaurant Network: Operating in over 24 countries with a variety of cuisines.
- User-Friendly App: A simple and intuitive design for easy ordering and reservations.
- Sustainability Efforts: Commitment to eco-friendly practices.
- Innovative Campaigns: Creative advertising and robust loyalty programs like Zomato Gold.
Lessons from the Journey
Zomato’s story is a testament to resilience, innovation, and vision. From missing meetings with investors to navigating industry disruptions, Deepinder Goyal’s journey shows that success requires more than a solid business plan—it demands belief and perseverance.
The company continues to lead with a 45% market share in India while venturing into quick commerce through Blinkit, showcasing its adaptability.
What Lies Ahead for Zomato
Despite challenges, Zomato remains committed to redefining food delivery. Deepinder Goyal’s philosophy—of focusing on work and letting results follow—continues to guide the company. With its strong foundation and ambitious vision, Zomato is poised to lead the industry for years to come.
Zomato’s journey from scanning menus at Bain to becoming a household name highlights one key lesson: extraordinary success often begins with simple ideas.
