SUCCESS STORY OF ZOMATO
Zomato is a food delivery and restaurant discovery platform that has become one of the most successful companies in its industry. Founded in 2008 by Deepinder Goyal and Pankaj Chaddah in India, the company has grown rapidly to become a global player in the food delivery and restaurant discovery space. Here are some key points that highlight Zomato's success story:
- Early success in India
- Expansion into new markets
- Diversification of services
- Strong partnerships and acquisitions
- Strong and consistent growth
- Strong financial backing
- Strong brand recognition
- History
- Investment
- Acquisitions
- Failure
- Conclusion
Early success in India:
Zomato's initial focus was on the Indian
market, where it quickly gained a reputation as a reliable and user-friendly
platform for finding and ordering food online. By 2010, the company had
expanded to multiple cities in India and was already profitable.
Expansion into new markets:
After
establishing itself in India, Zomato began expanding into new markets, starting
with Dubai in 2012. Over the next several years, the company expanded to more
than 10 countries, including the United Kingdom, the United States, and
Australia.
Diversification of services:
In addition to food delivery, Zomato also
diversified its services to include restaurant discovery and booking, as well
as table reservations. This diversification helped the company to grow its user
base and revenue streams.
Strong partnerships and acquisitions:
Zomato
has formed partnerships and made strategic acquisitions to help it expand into
new markets and strengthen its position in existing ones. For example, the
company acquired Runnr, an Indian food delivery company in 2017, which helped
it to expand its delivery services in India.
Strong and consistent growth:
Despite the challenges posed by the COVID-19
pandemic, Zomato has continued to grow at a strong and consistent rate. In
2020, the company reported a revenue growth of 63% YoY.
Strong financial backing:
Zomato has been able to raise significant
amounts of funding from investors, which has helped it to expand into new
markets and pursue strategic acquisitions. As of 2021, the company has raised
over $1.4 billion in funding and is valued at over $3 billion.
Strong brand recognition:
Zomato has a strong brand recognition and
reputation as a reliable and user-friendly platform for finding and ordering
food online. This brand recognition has helped the company to attract customers
and retain them in the long-term.
Strong management team: The company is led by
a strong management team with a wealth of experience in the food delivery and
restaurant discovery space. This team has been able to guide the company
through its rapid growth and expansion, and position it for long-term success.
History of Zomato:
Zomato is a food delivery and restaurant discovery platform that was
founded in 2008 by Deepinder Goyal and Pankaj Chaddah in India. The company
began as a simple restaurant search and discovery platform, but over the years
it has evolved into a global player in the food delivery and restaurant
discovery space.
The story of Zomato began in 2008, when Goyal and Chaddah, both working
at Bain & Company, decided to launch a website that would provide
information on restaurants in their local area. They called the website
"Foodiebay" and it was initially focused on the Indian market. The
website provided basic information on restaurants, such as their location,
contact information, and menu items.
In 2010, Foodiebay rebranded as Zomato and expanded to multiple cities
in India. The company also introduced a new feature that allowed users to order
food online, which helped to increase its user base and revenue streams. By
this time, the company was already profitable and was well on its way to
becoming one of the most successful companies in its industry.
In 2012, Zomato expanded into its first international market, Dubai.
Over the next several years, the company expanded to more than 10 countries,
including the United Kingdom, the United States, and Australia. The company
also diversified its services to include restaurant discovery and booking, as
well as table reservations, which helped it to grow its user base and revenue
streams even further.
In 2015, Zomato acquired Urbanspoon, a restaurant discovery platform based
in the United States and Australia, which helped the company to expand its
presence in these markets. In 2017, Zomato also acquired Runnr, an Indian food
delivery company, which helped it to expand its delivery services in India.
In 2020, Zomato reported a revenue growth of 63% YoY. Despite the
challenges posed by the COVID-19 pandemic, Zomato has continued to grow at a
strong and consistent rate.
Zomato's success story is one of rapid expansion, diversification of
services, strong partnerships and acquisitions, consistent growth, strong
financial backing, a strong brand recognition and a strong management team.
These factors have helped the company to establish itself as a global player in
the food delivery and restaurant discovery space and position it for long-term
success.
As of 2021, Zomato has raised over $1.4 billion in funding and is valued
at over $3 billion. The company operates in more than 20 countries and has over
150 million monthly active users. The company has also been profitable since 2010,
which is a rare feat in the startup world.
Zomato's journey from a simple restaurant search and discovery platform
to a global player in the food delivery and restaurant discovery space has been
an impressive one. The company's focus on providing valuable and user-friendly
services, along with its strategic partnerships and acquisitions, has helped it
to establish a strong presence in multiple markets around the world.
Investment Of Zomato:
Zomato has raised over $1.4
billion in funding from a variety of investors. The company has raised funding
through a number of rounds, including seed rounds, Series A, B, C and D rounds,
as well as multiple rounds of debt financing.
In 2010, Zomato raised $1
million in its Series A round of funding from Info Edge. In 2011, the company
raised $3 million in its Series B round of funding from Sequoia Capital.
In 2012, Zomato raised $10
million in its Series C round of funding from Vy Capital, Info Edge, and Sequoia
Capital. In 2013, the company raised $27 million in its Series D round of
funding from Sequoia Capital, Vy Capital, and Info Edge.
In 2014, Zomato raised $60
million in its Series E round of funding from Temasek Holdings and Vy Capital.
In 2015, the company raised $225 million in its Series F round of funding from
Temasek Holdings, Vy Capital, and Info Edge.
In 2016, Zomato raised $275
million in its series G round of funding from Temasek Holdings, Vy Capital, and
Info Edge.
In 2017, Zomato raised $200
million in its series H round of funding from Temasek Holdings, Vy Capital, and
Info Edge.
In 2018, Zomato raised $275
million in its series I round of funding from Temasek Holdings, Vy Capital, and
Info Edge.
In 2019, Zomato raised $150
million in its series J round of funding from Temasek Holdings, Vy Capital, and
Info Edge.
In 2020, Zomato raised $250
million in its series K round of funding from Temasek Holdings, Vy Capital, and
Info Edge.
In 2021, Zomato raised $250
million in its series L round of funding from Temasek Holdings, Vy Capital, and
Info Edge.
As of 2021, Zomato's valuation
is estimated to be over $3 billion. Some of the notable investors of Zomato
are, Info Edge, Sequoia Capital, Vy Capital, and Temasek Holdings.
In summary, Zomato has raised
over $1.4 billion in funding from a variety of investors. The company has
raised funding through multiple rounds, including seed rounds, Series A, B, C
and D rounds, as well as multiple rounds of debt financing. The company's valuation
is estimated to be over $3 billion and its major investors are, Info Edge,
Sequoia Capital, Vy Capital, and Temasek Holdings.
Acquisitions of zomato:
Zomato has made
several acquisitions over the years as a part of its growth strategy. Here are
some of the notable acquisitions made by the company:
Urbanspoon (2015) - Zomato acquired Urbanspoon, a restaurant discovery
platform based in the United States and Australia, which helped the company to
expand its presence in these markets.
Runnr (2017) - Zomato acquired Runnr, an Indian food delivery company,
which helped it to expand its delivery services in India.
TongueStun (2018) - Zomato acquired TongueStun, an Indian food delivery
platform, which helped it to expand its delivery services in India.
MapleGraph (2018) - Zomato acquired MapleGraph, a B2B food delivery
platform, which helped it to expand its delivery services to corporate
customers.
TongueStun (2019) - Zomato acquired MapleGraph, a B2B food delivery
platform, which helped it to expand its delivery services to corporate
customers.
UberEats India (2020) - Zomato acquired UberEats India, which helped it
to further solidify its position as a leading food delivery platform in India.
TongueStun (2020) - Zomato acquired TongueStun, a food delivery platform
in India, which helped it to expand its delivery services in India.
These acquisitions have helped Zomato to
expand its presence in multiple markets, diversify its services, and solidify
its position as a leading player in the food delivery and restaurant discovery
space.
In summary, Zomato has made several
acquisitions over the years as a part of its growth strategy. Some of the
notable acquisitions include Urbanspoon, Runnr, TongueStun, MapleGraph and
UberEats India. These acquisitions have helped Zomato to expand its presence in
multiple markets, diversify its services, and solidify its position as a
leading player in the food delivery and restaurant discovery space.
Failure of Zomato:
Zomato, like any
other company, has also faced its fair share of failures and challenges. Here
are a few notable failures of Zomato:
Online Ordering and Delivery: In 2015, Zomato entered the online food
ordering and delivery market in India, but the company struggled to keep up
with the competition from other players in the market such as Swiggy and
FoodPanda. This forced Zomato to re-evaluate its strategy and shift its focus
to building a sustainable business model for its food delivery services.
Food Delivery Business Model: In 2019, Zomato had to change its business
model from a marketplace model to an inventory-led model, which meant that it
started investing in its own fleet of delivery partners. This was a major shift
for the company and it faced challenges in scaling up its delivery operations
and keeping up with the competition.
Expansion in International Markets: Zomato has also struggled in
expanding its business in international markets. The company has faced
challenges in expanding to the US and the UK, and eventually had to withdraw
from some of the markets.
Layoffs: In 2019, Zomato faced a slowdown in its delivery business and
had to let go of 13% of its employees, which was a difficult decision for the
company and its employees.
Employee Unrest: In 2020, Zomato faced a series of protests by its food
delivery partners in India, who were unhappy with their low pay and lack of
benefits. This caused a major PR crisis for the company and it had to take
steps to address the concerns of its delivery partners.
Conclusion:
Zomato's
success story is one of rapid expansion, diversification of services, strong
partnerships and acquisitions, consistent growth, strong financial backing, a
strong brand recognition and a strong management team. These factors have
helped the company to establish itself as a global player in the food delivery
and restaurant discovery space and position it for long-term success.
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