How was Zomato Started? Zomato – History
All of it started when the founders, Deepinder Goyal and Pankaj Chaddah were in their office in New Delhi and they came across so many people who were waiting for a long time just to acquire a flash of the menu card. And in that exact moment, the idea for obtaining a solution was planted in this duo’s minds and that led them to launch Zomato, formerly known as ‘Foodiebay’.
Zomato – Startup Launch
When the founders launched this website, it wasn’t called Zomato back then, it was called Foodiebay. And 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. And that’s when this venture started being called Zomato, as we know of it today. It was in 2010 when Foodiebay was officially rechristened as Zomato.
Zomato – Startup Challenges
The most significant hurdle in the Zomato journey was to find a way to cover all the restaurants in all the areas in all the pivotal cities so that the consumers who hinge on them do not miss the finest restaurants in the locality. This milestone has been omnipresent since the inception and continues to drive considerable efforts on the venture’s part.
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 indirect competition from regional food delivery applications like SendMe, etc.
Zomato – Funding & Investors
To date, Zomato has raised close to $2.1 billion in funding. Recently (Feb 2021) Zomato closed a $250 million funding round, led by existing investors Tiger Global, Kora and Fidelity. Zomato’s valuation touches $5.4 Billion. In this round, Kora pumped in $115 million, while Fidelity invested $55 million and Tiger Global has invested $50 million.
Zomato – ESOPs
Zomato will be listed in the Indian stock market on July 23, 2021, as per reports. The company allotted its shares on Thursday, July 22, 2021, where Zomato co-founder, Deepinder Goyal, has got the highest ESOPs worth Rs 2,800 crores, along with owning over 5% in Zomato separately.
The next was the founder of the non-profit Feeding India, Ankit Kawatra, who stood with ESOPs worth Rs 628 crores. Mohit Gupta, Gaurav Gupta, and Gunjan Patidar were the others to follow with 208, 202, and 156 crores respectively.