Zomato: Founders | History | Success Story | Growth | Funding (2024)

There were days when we used to call different restaurants to place orders and again call up for corrections, directions, and reservations. Then came applications like Zomato, which reversed the whole scenario and made it extremely simple for consumers.

Deepinder Goyal and Pankaj Chaddah founded Zomato in 2008, which eased the process of food delivery and eating out, with the help of which we now can enjoy the best food served by the restaurants in our locality.

Know more about Zomato's Success Story, Founders, and Team, Startup Story, History, Funding and Investors, Acquisitions, Business Model, Revenue Model, Competitors, and Growth in the article ahead.

Zomato - Company Highlights

About - Zomato
Zomato - Industry
Zomato - Founders and Team
Zomato - Startup Story
Zomato - History
Zomato - Mission and Vision
Zomato - Name, Tagline, and Logo
Zomato - Products/Services
Zomato - Business Model
Zomato - Revenue Model
Zomato - Challenges Faced
Zomato - Funding and Investors
Zomato - ESOPs
Zomato - Investments
Zomato - Acquisitions
Zomato - Growth
Zomato - Partnerships
Zomato - Advertisements and Social Media Campaigns
Zomato - Awards and Achievements
Zomato - Competitors
Zomato - Future Plans

About - Zomato

Zomato is an Indian food delivery startup restaurant aggregator. It primarily provides concrete information, menus, and user reviews of the restaurants. Along with this, Zomato also has food delivery options from partnered restaurants in the selected cities.

Zomato - Industry

The online food delivery industry in India is anticipated to cross INR 2 lakh crore by 2030, growing at a remarkable 18% CAGR according to a joint report by Bain and Company and Swiggy.

According to growth projections, the market volume is expected to reach US $81.91 billion by 2028, highlighting the noteworthy influence and continued growth of the online food delivery sector in India.

Zomato - Founders and Team

The founders of Zomato are Deepinder Goyal and Pankaj Chaddah. Both are IIT graduates and were working with Bain & Co. in New Delhi before they came together to launch Zomato.

Deepinder Goyal

Deepinder Goyal, the Co-Founder and CEO, is an IIT Delhi alumnus. Goyal was not a good student back at school, but he eventually made his way to the prestigious IIT. 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 founded Zomato.

Deepinder Goyal has waived his salary for FY22. This was disclosed in a regulatory filing of Zomato dated June 7, 2022. He is also one of the sharks on Shark Tank India and the newest Billionaire in India.

Pankaj Chaddah

Pankaj Chaddah is a BTech, Mechanical Engineering graduate from IIT Delhi. Chaddah completed his graduation and then went to join Bain and Company, where he served for two and half years before joining Deepinder to found Zomato. However, this co-founder resigned from Zomato in May 2018, where he served as a "conscience keeper and a support system during upheavals," as he had described his role, for over 10 years. Chaddah founded Shyft (formerly Mindhouse) in November 2019, where he currently serves as a Co-Founder.

Aakriti Chopra, one of the early employees of Zomato, has been promoted to the Co-Founder position. She worked as the Chief People Officer when the promotion landed to recognize her contributions to the company. Aakriti Chopra is the wife of Albinder Dhindsa, the chief of Blinkit, and her promotion came in on June 9, 2022, with the signaling of the companies coming closer. So now, the revelation is somewhat interesting that the Zomato Co-Founder, Aakriti Chopra, is married to the Founder of Blinkit, Albinder Dhindsa.

Gaurav Gupta, who initially joined as the Global Head of the Advertising sales of Zomato and COO and was later promoted to the Co-Founder position of the platform, resigned on September 14, 2021. Gaurav headed the supply of the food-tech company.

On his parting, Gaurav Gupta had drafted a beautiful mail that he sent to everyone at Zomato with a special address to Deepinder Goyal. Zomato CEO Deepinder Goyal had not failed to reply to the touching mail.

Furthermore, Deepinder also tweeted about the exit of his co-founder, thanking him for the amazing journey they spent together. Here goes his Tweet:

Zomato - Startup Story

Zomato's beginning story can be traced back to the creative minds of Deepinder Goyal and Pankaj Chaddah, two IIT Delhi grads who worked in New Delhi for Bain & Company. 'Foodiebay' was developed in 2008 by them as a way to save time and streamline food access. It became the biggest restaurant directory in Delhi NCR in an astounding nine months, and it quickly spread to Mumbai and Kolkata.

Following two prosperous years, the business changed its name and became Zomato. Due to the app's ability to browse menus, read reviews, and place food orders from partner restaurants, its popularity skyrocketed, and it began to expand steadily throughout the world. Foodiebay changed its name to Zomato on January 18, 2010, and by 2019, it had grown into a major international restaurant aggregator with operations in 24 countries and more than 10,000 cities.

Zomato - Startup History

When the founders launched this website, it wasn’t called Zomato back then, it was called Foodiebay. It initially started out in Delhi, then the services were extended to cities like Mumbai and Kolkata.

With the tremendous user base and growth rates that Foodiebay brought in to the founders, they decided to modify it and take it international. That’s when this venture started being called Zomato, as we know it today. It was in 2010 when Foodiebay was officially rechristened as Zomato.

Zomato - Mission and Vision

Zomato states that its mission is "to providebetter food for more people."

Zomato Co-Founder Pankaj Chaddah declared that the vision of Zomato "is to be the global platform when someone is looking for food locally."

Zomato - Name, Tagline, and Logo

The founders changed Foodiebay to 'Zomato' to make it more prominent and easier to memorize.

Zomato - Products/Services

Some of the prominent products/services of Zomato are:

Zomato Wings: Linking Restaurants and Investors

Zomato unveiled Zomato Wings, a website that links restaurant owners and investors. Serving as a fundraising intermediary, Zomato places a strong emphasis on building a connection between restaurants and venture capital firms to promote expansion in the food sector.

Zomato AI - Revolutionizing Food Discovery

Zomato AI, an innovative AI-powered food discovery companion, is integrated into the platform to redefine how users interact with food-related services. This advanced feature offers personalized suggestions, catering to individual preferences, dietary needs, and moods, revolutionizing the dining experience.

Zomato Future Foundation

Investing in Education: Up to two children of Zomato delivery partners are financially supported by the Zomato Future Foundation, which focuses on education. The project supports employee families and provides further education scholarships for top performance, with an annual coverage of Rs 50,000 per child.

Zomato's Hyperpure

The B2B food tech vertical Hyperpure by Zomato is revolutionizing restaurant operations. With the help of this program, restaurants can purchase premium foods straight from farmers and producers, guaranteeing the consistency, quality, and freshness of their supply.

Zomato Gold

Free deliveries, VIP access during rush hours, and extra savings on dining and delivery services are all included with this exclusive Zomato Gold membership.

Zomaland

Zomato curates an offline carnival called Zomaland that features interactive installations, musicians, comedians, and some of the best restaurants in town. The finest of Zomato Collections are on display at this large event, which provides an immersive experience that goes beyond the screen.

Xtreme

Zomato's parcel delivery app, Xtreme, was released in October 2023 and allows retailers to send and receive tiny parcels. Zomato's revenue streams are diversified and its services are expanded beyond food delivery through Xtreme's utilization of its vast network of delivery partners.

Zomato - Business Model

Zomato's business model is a shining example of innovation and change in the food technology industry. Zomato is an international restaurant aggregator and food delivery company based in India that has completely changed how people find restaurants and order food.

Originally established as a restaurant discovery platform, Zomato swiftly evolved to encompass a broader spectrum of services, including food delivery and table reservations. Its success is ascribed to the skillful fusion of state-of-the-art technology, effective logistics, and a user-centric mindset. Zomato's business model is multidimensional, encompassing many revenue streams and services, which together form a comprehensive ecosystem within the food and restaurant industry.

Zomato is a powerful player in the fast-paced food delivery and restaurant aggregation business. It operates in a highly competitive environment both locally and abroad. Its tenacity, diversification, and skillful use of technology have cemented its position.

Zomato - Revenue Model

Zomato makes revenue from different resources; some of the prominent ones are:

• Primary Revenue Source: Zomato's primary source of revenue is the channel it offers for businesses to place their advertisements on the platform.
• Commission-Based Plan: Zomato charges restaurants a fee to be included on its platform and to process orders. Its business plan is based on commissions.
• Zomato Pro Membership: Through the Zomato Pro membership program (previously Zomato Gold), a loyalty program that offers members access to special privileges and services, Zomato increases its revenue.

Zomato - ESOPs

According to a news story from August 2023, Zomatoannounced in a BSE filing that it has granted employee stock option plans (ESOP) worth INR 2.52 crore to a subset of its workers as well as employees of its subsidiaries.

Zomato has distributed equity shares worth around INR 10.65 crore through various employee stock option programs (ESOPs). According to an exchange statement, the business stated that 10,64,69,448 fully paid-up shares had been allotted under the Zomato Employee Stock Option Plans of 2018, 2021, and 2022 by its board, as per the news report of November 2023.

According to a news source dated February 8, 2024, Zomato reported in an exchange filing that its board has approved the allotment of 10,88,68,081 equity shares with a face value of INR 1.

Zomato - Challenges Faced

Throughout its progress, Zomato encountered numerous obstacles that called for calculated solutions. One of the biggest challenges was trying to incorporate every restaurant in all of the major cities so that customers could have access to the best local eating alternatives. This goal, which has remained constant since the company's founding, needs constant work.

Critical obstacles that Zomato faced included possible business losses as a result of relationships being negatively impacted by growing commissions, investor exits having an influence on its captable, and share price declines subsequent to the acquisition of Blinkit. The Competition Commission of India (CCI) investigated the company for alleged unfair trading practices, focusing on problems including deep discounting and hefty fees.

Zomato has had to deal with controversy, including the #Logout campaign that restaurants started because of their profit margins. Threats to cybersecurity, a significant cyberattack in 2017, and problems with customer service, including the #RejectZomato incident, highlighted the company's need to deal with a variety of difficulties.

Notwithstanding these obstacles, Zomato demonstrated tenacity by modifying its business plans and operations, rebranding, cutting back on services, and addressing legal issues while highlighting its dedication to expansion and advancement.

Zomato - Funding and Investors

To date, Zomato has raised close to $3 billion in funding over 23 funding rounds.

Here is a list of all the funding rounds of Zomato:

Zomato - Investments

Zomato has invested in 14 companies to date.

Here is a list of the major investments done by Zomato:

Exit

Zomato has exited from two companies: blinkit and Grab.

Zomato - Acquisitions

Zomato has acquired 15 companies to date.

Here's a list of the Zomato acquisitions:

Zomato - Growth

Zomato has grown far and wide ever since it brought the disruptive idea of food delivery into the Indian ecosystem of startups.

Here's a look at Zomato's growth highlights:

• By 2011, Zomato had successfully established a monopoly in Delhi, NCR, and had moved to other Indian cities like Pune, Bangalore, Chennai, Hyderabad, and Ahmedabad.
• Zomato also kept up with the smartphone boom and timely launched its mobile application. This greatly contributed to its growth.
• By 2012, Zomato had begun its overseas operations, full-fledged in countries like the UAE, Sri Lanka, Qatar, the United Kingdom, the Philippines, and South Africa.
• In 2013, it added Turkey, Brazil, and New Zealand to its ever-growing list of expansions.
• In 2017, Zomato claimed that it was operating profitably in all 24 countries, along with rolling out a zero-commission model. The company claimed that its revenue grew by 81% in this particular year.
• In the same year, the online ordering services of the company crossed the mega milestone of 3 million orders per month. Zomato proudly boasts of serving 1.5+ million orders in a day.
• Zomato delivered its 1 billion orders in July 2021.
• Zomato had 226,000 average monthly active food delivery restaurant partners.
• Zomato had352,000 average monthly delivery partners.
• It had 647 million orders and 58 million customers in fiscal year FY23.
• It served more than 800 cities in the same year.

Financials

Zomato saw its operating revenue grow by 68.5% from the previous quarter. In Q2 FY25, revenue reached INR 4,799 crore, up from INR 2,848 crore in Q2 FY24. Hence Zomato’s total income crosses INR 5,000 crore in Q2 FY25. This strong growth was mainly due to the expansion of Zomato’s core food delivery business, its B2B Hyperpure division, and Blinkit.

Zomato - Partnerships

Being active since 2008, Zomato has also seen a lot of partnerships with a diverse range of national and international companies, including restaurants, cafes, fintech companies, and more. To mention some of the prominent partnerships of Zomato are:

• Zomato has partnered with the government of India for a street food project on February 5, 2021.
• Zomato joined hands with InCred to extend credit facilities to restaurant partners on December 21, 2020.
• Zomato collaborated with RBL Bank on March 2, 2020, to launch the "Edition Credit Card," powered by Mastercard.
• Zomato and BioD Energy collaborated to reduce the wastage of cooking oil in the country on October 21, 2019.
• The company partnered with Paytm to expand its food ordering business online in India on January 18, 2019.

Zomato's digital campaign, #zomatoloot, is causing a stir on the internet thanks to its creative marketing approach. Zomato addresses consumers weary of seeing the same old YouTube advertisements for "creamy pasta" and "butter chicken," and presents an option for interaction.

By encouraging people to make advertisements they would enjoy viewing, the campaign upends the status quo in the advertising industry. Zomato is well known for its meal delivery services, but it has also made a name for itself with clever slogans and creative advertising campaigns. This campaign demonstrates the brand's capacity to use creativity to engage consumers in ways that go beyond its main service offering.

Zomato - Awards and Achievements

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

Though Zomato is very predominantly present in the industry, it does face a lot of direct and indirect competition. Zomato faces direct competition from Swiggy, and competition from other players, including:

• Faasos
• Box8
• Domino's
• FreshMenu
• Pizza Hut
• TravelKhana

Some of the other international competitors of Zomato are:

• DoorDash
• Uber Eats
• Grubhub Inc.
• Deliveroo
• Postmates
• ChowNow

Zomato - Future Plans

In 2024, Zomato plans to grow by focusing on Tier 2 and Tier 3 cities in India. These areas have a lot of potential and rising demand for online food delivery, which could bring big growth for the company.

Zomato plans to use its wide network of restaurant partners to its advantage as it enters the catering industry. Zomato wants to get into the large-order service industry, as indicated by this strategic plan that was announced by a senior executive in December 2023.

With the use of its well-established platform, the large food delivery company hopes to expand its customer base and provide new services. This action is in line with Zomato's future goals to investigate uncharted territory and offer a wide range of services in addition to standard meal delivery.

FAQs

What does Zomato do?

Zomato is a foodtech company, which helps users scan through the restaurants and eateries in their town, book reservations, share reviews, opt for home deliveries from them, and more.

Who are the Founders/Owners of Zomato?

The founders of Zomato are Deepinder Goyal and Pankaj Chaddah.

When is Zomato launch date?

Zomato was founded in 2008 by Deepinder Goyal and Pankaj Chaddah in Gurgaon, Haryana India.

Where did Zomato start?

Zomato started in Delhi NCR and is currently headquartered in Gurgaon, Haryana.

What is Zomato South Africa?

Zomato South Africa Proprietary (Pty) Ltd. was a Zomato subsidiary that operated in South Africa. However, Zomato South Africa was shut down by Zomato in January 2022.

How does Zomato make Money?

The main source of revenue is the advertisements channel that the portal offers to display. This accounts for most of its revenue followed by the commissions that it charges to the restaurants. It works on a Commission Business Model.

Is Zomato an Indian Company?

Yes. Zomato is headquartered in Gurgaon, Haryana, India.

What number of orders per day does Zomato deliver?

Looking at the Zomato number of orders per day, we can safely conclude that the foodtech delivers over 1.5 million orders daily.

How did Zomato start?

Zomato, founded as "Foodiebay" in 2008 by Deepinder Goyal and Pankaj Chaddah, began as an online restaurant directory and quickly evolved into a leading food discovery and delivery platform.

Zomato started in which city first?

Zomato started its business in Delhi first.