With the launch of its IPO recently and successful listing, the name Zomato is on the tongue of every Indian nowadays. But who would have thought that the small town guy from Punjab state would make it this big. Well if you’ve the caliber and fire in your belly, you can surpass the difficult road and set an example for others to dream big.
How it started:
Deepinder Goyal co-founder and CEO of Zomato, after completing his graduation from IIT Delhi in 2005 took a job of management consultant in Brain and Company, New Delhi. While working there he met Pankaj Chaddah Co-Founder and COO of Zomato, both Deepinder and Pankaj observed that people standing in a queue at lunchtime and waiting for their chance to order. There the idea striked, they got the idea of starting Foodiebay, where they put up scanned copies of the food court menu onto their company’s private network. Everyone at the company soon started using this service, and there was a sudden surge in website traffic.
When it was successful at the office level they started to list restaurants from Delhi-NCR on Foodiebay and quickly expanded to other cities like Kolkata and Mumbai.
After their traffic increased massively, they decided to tweak it and make it international, and in November 2010 they changed the name from Foodiebay to Zomato. And as it became known, thousands of people started using their website to find out about the best restaurants in the area.
This interest from the surrounding people encouraged Pankaj and Deepinder to consider going to PAN India. They got the idea to change the name of the site. People wanted something stronger and more memorable, and that’s where the word ZOMATO came up in November 2010.
The founders wanted to make life a little easier for their users and so the idea of building a mobile phone application was born. With this growth in business and ideas came the need for funding.
Funding’s raised so far:
Sanjeev Bikhchandani, the founder of Naukri.com, got impressed with this idea of Deepinder and Pankaj.
In December 2010, Sanjeev Bikhchandani provided Zomato with a funding of 1 million USD through his company Info Edge India, and after that, there was no looking back.
In the next round of funding, they got funding of 3.5 million USD from Info Edge India. In 2013, Zomato received a staggering 10 million USD from Info Edge India, making Info Edge India a holder of nearly 50% of the shares in the start-up.
Other investors for Zomato include Sequoia Capital, VY Capital, and Temasek. The funds just kept coming in after this.
In September 2012, Zomato launched its services in Dubai, Sri Lanka, United Kingdom, South Africa, Turkey, and New Zealand.
And by the end of 2018, it is estimated that Zomato would’ve received funding of more than 300 million USD.
This funding gave Zomato expansion into more cities across India apart from Delhi, Bangalore, Kolkata, Mumbai, Hyderabad, Ahmedabad, Pune, Chennai etc.
In 2020, Zomato raised $660 Million in the funding of Series J round led by Kora, Tiger Global Management, hitting Zomato’s Valuation to $3.9 Billion.
And on 14 July 2021, Zomato opened its IPO at the initial price band of Rs. 72 – 76.
Looking at the current success of Zomato one would say the following quote:
“If you really look closely, most overnight successes took a long time.”
— Steve Jobs