Zomato at a Glance

Founded in 2008 by Deepinder Goyal and Pankaj Chaddah, Zomato began as a simple restaurant discovery and review platform in India. Over the years, it rapidly evolved into a major player in the food delivery industry, expanding across multiple countries and reshaping how food was ordered and delivered. The company’s growth trajectory has been nothing short of impressive, backed by its innovative business model and a strategic focus on technology.

Deepinder Goyal, the visionary founder and CEO, has played an instrumental role in shaping Zomato’s path, guiding it through various phases of growth. Today, Zomato is a household name, particularly in India, where its app serves millions of customers, offering not only food delivery but also restaurant reservations, online ordering, and table bookings.

However, Zomato's journey has recently taken a significant turn as the company pivots into the realm of quick commerce. This shift is a response to changing consumer demands for faster, more immediate services in the food and retail sectors, especially in urban areas. Zomato’s decision to expand its focus beyond food delivery into broader quick commerce signals its ambition to capture the growing demand for faster, tech-driven delivery services, including grocery and daily essentials.

Zomato’s Business Model: Evolving from Food Delivery to Quick Commerce

Zomato’s business model has continually evolved to meet the dynamic demands of the Indian consumer. Initially, its core offering was a platform for food delivery, which quickly grew in popularity due to a combination of a vast restaurant network, an easy-to-use app interface, and reliable delivery systems. The company’s unique value proposition was its ability to offer quick access to a broad range of food options from local restaurants and national chains.

In its earlier years, Zomato expanded its business by acquiring competitors like Uber Eats India, increasing its market share in the food delivery industry. Over time, the company also ventured into online ordering, expanding beyond just delivery to include dine-in services and restaurant reservations.

Now, Zomato’s transition into quick commerce has marked the next phase of its growth strategy. The company has invested heavily in developing last-mile delivery networks for rapid delivery of not just food but also groceries and other daily essentials. This move is part of a broader trend in the quick commerce sector, which focuses on delivering products in under an hour. Zomato’s ability to leverage its established infrastructure, strong brand recognition, and technology-first approach makes it a formidable player in this space.

2. Zomato’s Business Segments

Zomato, now rebranded as Eternal Limited, has diversified its operations into four key business segments:

Food Delivery

Zomato's core business remains its food delivery platform, which continues to lead the Indian market with a 58% market share as of Q1 FY25. citeturn0search6 The platform offers a wide range of cuisines from local restaurants, providing users with convenience and variety.

Quick Commerce (Blinkit)

Acquired in 2022, Blinkit has become Zomato's most valuable asset, surpassing the food delivery segment in valuation. Goldman Sachs estimates Blinkit's gross order value (GOV) to grow at a compound annual growth rate (CAGR) of 53% between FY24 and FY27. In Q1 FY25, Blinkit reported a 130% increase in GOV and a 23-fold quarter-on-quarter profit growth, contributing significantly to Zomato's overall profitability. Dining Out (District)

Zomato has ventured into the dining-out segment with its app District, focusing on live events and restaurant reservations. This move aims to capture a broader customer base seeking experiences beyond food delivery.

Hyperpure

Hyperpure supplies high-quality ingredients to restaurants, ensuring consistent quality and supporting the food service industry's supply chain. This segment has shown growth, with revenue increasing by 96% in recent periods. 

3. Zomato Share Price & Market Performance

Share Price Trends

Zomato's stock has experienced significant volatility. In August 2024, the share price surged to a 52-week high of ₹278.70 following a strong Q1 FY25 performance. citeturn0search19 However, in January 2025, the share price fell over 10% after the company reported a 57% decline in net profit for Q3 FY25. 

Promoter Holdings

Zomato's promoter holdings are a topic of interest for investors. As of the latest reports, the company has a public float with significant institutional and retail investor participation. 

Financial Results

In Q1 FY25, Zomato reported a net profit of ₹253 crore, a substantial increase from the previous year, driven by Blinkit's performance. However, by Q3 FY25, the company faced challenges, with net profit declining to ₹59 crore, despite a 64% increase in revenue. 

Milestones

• Rebranding to Eternal Limited: Reflecting its diversified business model, Zomato officially rebranded as Eternal Limited in February 2025. citeturn0news20
  
  
  

• Acquisition of Blinkit: In 2022, Zomato acquired Blinkit, marking a strategic move into the quick commerce sector.
  
  
  

• Launch of District App: The introduction of the District app expands Zomato's offerings into dining-out and event services.

Zomato's journey from a food delivery platform to a diversified tech-driven company illustrates its adaptability and ambition in the evolving Indian startup ecosystem.

4. Financial Highlights & Profitability Focus

Quarterly Financial Results

Zomato has witnessed fluctuating financial performance as it continues its diversification strategy. In Q1 FY25, the company reported a net profit of ₹253 crore, reflecting a sharp rebound from previous periods. This growth was largely driven by Blinkit’s strong performance, which saw a 130% increase in gross order value (GOV) and contributed significantly to the company’s financials. 

However, Q3 FY25 showed a decline in net profit, falling to ₹59 crore, despite a 64% rise in revenue, due to increased investments and high costs associated with the company's aggressive expansion strategy.

Sustainable Profitability and Cost Optimization

Zomato has made efforts to improve its profitability by focusing on sustainable cost optimization measures. Key to this approach is reducing delivery costs in food delivery and streamlining operations in Blinkit. Furthermore, investments in Hyperpure, the company’s B2B ingredient supply business, have been growing and now contribute significantly to revenue, further improving overall margin.

Zomato Share Price & Market Cap

Zomato's share price, as of August 2024, stood at around ₹278.70, reaching a 52-week high following positive earnings. The company has seen volatility, with the stock price fluctuating based on quarterly results and market sentiment. Its current market capitalization reflects its dual focus on food delivery and quick commerce, placing it as one of the top food-tech players in India’s stock market. Despite this, the company still faces challenges in delivering consistent profitability.

The price of Zomato shares, especially after its rebranding to Eternal Limited, is also affected by market movements related to the quick commerce boom and broader trends in tech stocks. 

5. Quick Commerce Expansion

Zomato's Quick Commerce Strategy

Zomato’s quick commerce strategy has been a game-changer for its growth. The acquisition of Blinkit, a leader in the hyperlocal logistics space, has positioned the company well in the 10-minute delivery model. Blinkit has quickly become a major revenue driver, with its gross order value increasing substantially quarter over quarter. In FY25, Blinkit was a key contributor to Zomato’s overall growth, and Goldman Sachs predicts that Blinkit’s business will continue to expand at a 53% compound annual growth rate (CAGR) through FY27.

Challenges in Hyperlocal Logistics

Despite its promising growth, quick commerce in India is still facing several logistical and operational challenges. One of the major hurdles is high operational costs, as the 10-minute delivery promise requires significant infrastructure investments in warehouses, technology, and delivery personnel. Additionally, supply chain management is crucial in maintaining efficiency, and Zomato has to constantly optimize its operations to ensure profitability while scaling the Blinkit business.

Another challenge is market competition from other quick commerce players like Swiggy Instamart and Amazon, which are also investing heavily in the hyperlocal logistics sector. Zomato will need to continuously innovate in terms of service speed, product range, and customer experience to maintain its competitive edge. 

Growth Prospects

The future growth trajectory of Zomato in the quick commerce space looks promising, as digital consumption and demand for instant delivery services continue to rise in India. With government support for digitization and e-commerce, Zomato has opportunities to scale Blinkit into a dominant player in the hyperlocal logistics market.

As part of its strategy, Zomato is heavily investing in AI and data analytics to improve operational efficiency and customer experience. This technological innovation will help the company maintain competitive advantage and sustain growth in the rapidly evolving quick commerce landscape.

Overall, Zomato’s foray into quick commerce represents a major step forward in its business evolution, and Blinkit’s growth in this segment is expected to continue making a significant impact on the company’s future profitability and market valuation.

6. Leadership & Vision

Deepinder Goyal's Role and Strategic Decisions

Deepinder Goyal, the co-founder and CEO of Zomato, has been instrumental in steering the company through various challenges and opportunities in the fast-evolving food-tech industry. Under his leadership, Zomato has transitioned from being a food delivery giant to a quick commerce powerhouse, diversifying its business model to capture growth in new verticals like hyperlocal delivery.

One of the most significant decisions made by Goyal was Zomato’s acquisition of Blinkit (formerly Grofers) in 2022, which signaled a major shift toward instant delivery and a new growth avenue beyond traditional food delivery. This acquisition was part of Goyal's vision to create a tech-driven company that is at the intersection of food, logistics, and technology.

Goyal’s leadership style emphasizes innovation and customer-centricity, ensuring that Zomato stays ahead of trends in the food-tech sector. Zomato’s recent investments in AI, data analytics, and automation highlight Goyal’s commitment to building a scalable and efficient business model that can sustain long-term growth in a competitive landscape. 

Company Culture, Innovation, and Roadmap

Zomato's company culture revolves around tech-driven growth, agility, and a disruptive mindset. The company encourages out-of-the-box thinking, innovation, and problem-solving, which has helped it stay competitive in a fast-changing industry. Goyal and his leadership team continuously push for technological advancements to improve both operational efficiency and customer experience. This focus on tech includes automation in delivery logistics, personalization through AI, and data analytics for better market insights.

Zomato's future roadmap revolves around scaling its quick commerce business, expanding its restaurant technology solutions, and leading the charge in sustainable food-tech. The company has also made strategic investments in dark kitchens and cloud-based restaurant management tools. The long-term goal is to build a holistic food ecosystem that not only meets customer demands but also offers value for stakeholders across the food delivery and logistics chain. 

Recent Public Statements or Announcements

In recent announcements, Deepinder Goyal has been vocal about Zomato’s focus on sustainability and becoming a more responsible corporate entity. He stated that Zomato aims to achieve net-zero emissions by 2030, which aligns with the company’s commitment to environmental sustainability. Goyal has also hinted at more acquisitions and partnerships that would further strengthen Zomato’s position in the quick commerce and food-tech space. This focus on sustainability and growth through strategic partnerships is shaping the market perception of Zomato as a forward-thinking and socially responsible business. 

7. Zomato in the Broader Market Context

Zomato’s Position in India’s Startup Ecosystem

Zomato is one of the most prominent names in India's startup ecosystem, often cited as a pioneer in the food-tech industry. As a part of India’s growing tech and e-commerce sector, Zomato has not only disrupted traditional food delivery but has also played a pivotal role in shaping consumer expectations for instant gratification in the digital economy. The company has created a robust platform that connects customers, restaurants, and delivery partners, contributing to the larger gig economy.

Zomato’s success story has also paved the way for other startups in the food and tech sectors, encouraging investments and innovation. Despite the challenges faced by the Indian startup ecosystem, including market volatility and increasing competition, Zomato’s strong market share and scalable business model position it as a leader. It is also an example of how Indian startups can navigate the global stage, evidenced by Zomato’s IPO in 2021 and listing on the NSE and BSE. 

Comparison to Competitors

When compared to its main competitors, Swiggy and Amazon Fresh, Zomato holds a distinctive position, especially with its foray into quick commerce. While Swiggy has also made similar moves with Instamart, Zomato’s acquisition of Blinkit positions it as a direct challenger in the hyperlocal logistics space.

• Swiggy: Swiggy remains strong in food delivery, but its push into quick commerce has been more gradual. However, Swiggy’s reach and investment in dark kitchens provide significant competition in the quick commerce space.
  
  
  

• Amazon Fresh: Amazon Fresh, part of the global tech giant Amazon, has the advantage of a massive logistics network. However, it remains focused on grocery deliveries rather than fully integrating food delivery and quick commerce.
  
  
  

Zomato differentiates itself by combining food delivery and instant commerce under one umbrella, which is gaining traction with Indian consumers who seek faster, more convenient services. 

Adapting to Consumer Trends and Market Dynamics

Zomato’s ability to adapt to changing consumer trends and market dynamics has been a major factor in its success. For instance, the company’s pivot to quick commerce was a direct response to the growing demand for hyperlocal, 10-minute delivery services. Similarly, Zomato’s investment in artificial intelligence (AI) and machine learning (ML) has enabled it to personalize the customer experience, predict food preferences, and improve operational efficiency.

Moreover, as consumer preferences shift toward sustainable and healthy eating, Zomato is adapting by promoting eco-friendly packaging, supporting local farms, and integrating nutrition-focused menus. This shows how Zomato not only focuses on market trends but also consumer sentiments, ensuring the company stays relevant in the ever-evolving food-tech space. 

Conclusion

Zomato has established itself as a key player in India’s food-tech and quick commerce industries, thanks to its leadership under Deepinder Goyal and its focus on innovative technology and customer-first strategies. The company’s business evolution—from food delivery to quick commerce—is aligned with changing market dynamics, consumer needs, and technological advances.

While competition remains fierce, Zomato's aggressive growth strategy, tech-driven solutions, and commitment to sustainability position it well to continue leading in the food-tech and e-commerce space. As Zomato continues to expand its services and adapt to new trends, it remains a company to watch in India’s vibrant startup ecosystem.