Creativity, innovation, hard work, vision and perseverance are like 5 fingers. Keeping them together can be one powerful fist of success. There has been a gloom in the food startup sector. However, Zomato is smiling its way to the bank.
Since its inception in 2008, Zomato has been the frontrunner in the Indian food delivery market. With innovation & new inputs, the startup has inspired many entrepreneurs to come forward. Being one of the oldest and biggest startups in the country has managed to earn back the original investment in a few major markets. Staying true to its tagline ‘Never have a bad meal’, Zomato has already disrupted the food delivery market. Zomato has announced an operational break-even for its business. The 5 major markets include India, Lebanon, Qatar, UAE & the Philippines. This makes Zomato, the first Indian eBusiness startup to become profitable. Zomato currently operates in 23 countries & is looking to expand its operations in more countries. The startup has also announced that they are on track to register profits come June next year. This is a very rare accomplishment for a unicorn startup. Zomato plies its trade in the food delivery sector. The startup rakes in the moolah through advertising and delivery services. Last month, a Baidu executive told Reuters the company was in talks to invest in Zomato among other Indian startups. Since its launch in 2008, Zomato has expanded to nearly two dozen countries and made eight overseas acquisitions, according to the statement. It has received $225 million in funding so far. India’s consumer internet startups have attracted billions of dollars in venture capital funding in the last couple of years on the prospects of rising income levels and increasing internet penetration in a county of 1.2 billion people. However, industry insiders say funding is becoming harder to come by, as investors focus on profits to justify sky-high valuations.
The Gurgaon, New Delhi-based Zomato is estimated at just over $1 billion and its investors include Sequoia Capital, Singapore government’s Temasek Holdings and Indian e commerce player, Info Edge. The Indian food startup sector has been going through a rough patch. If we look back at last November, Zomato had missed their sales target by large numbers. The company also laid off approximately 10 percent of its workforce. We have always been paranoid about revenue, and therefore building a sustainable business,” Deepinder Goyal, founder and CEO of Zomato, said in a statement. The company declined to share details about business percentages & future fundraising plans.