The well-known foodtech company Eternal (previously Zomato) is establishing Blinkit Foods Limited as a new wholly owned subsidiary. “Blinkit Foods will be involved in the business food services, including innovation, preparation, sourcing, sale, and customer delivery of food,” the company stated in an exchange filing. The proposed authorised share capital of INR 1 Cr will be held by the subsidiary.
What is Blinkit Foods?
Although the business did not specify which market Blinkit Foods will serve, it is most likely going to serve Blinkit’s 10-minute meal delivery service Bistro. Eternal stated in its Q1 FY26 shareholder letter that it has been investing in the growth of Bistro, whose culinary infrastructure is owned and run by Blinkit. According to the firm, there are already 38 of these kitchens operating in Bengaluru and Delhi NCR.
Eternal’s Q1 FY26 Performance Snapshot
According to Eternal, it spent INR 60 Cr on capital expenditures in Q1, mostly for IT hardware and other needs, as well as investments in café kitchens. Overall, Eternal’s consolidated net profit fell 90% from INR 253 Cr in the previous quarter to INR 25 Cr in Q1 FY26. But compared to the same period the previous year, the top line increased by more than 70% to INR 7,167 Cr from INR 4,206 Cr.
Early data, according to Eternal CEO Deepinder Goyal, is positive because the kitchens are creating more demand without consuming Zomato’s revenue. Even though customer-side traction is rather high, the company still needs to put in effort and figure out how to turn a profit in this industry. As a result, Eternal will keep making strategic investments to create a profitable and scalable company.
Blinkit’s Financial & Infrastructure Growth
Operating revenue for the June quarter was INR 2,409 Cr, up over 40% from INR 1,714 Cr in the previous March quarter, according to Blinkit. Revenue increased by more than 155% year over year from INR 943 Cr. In the quarter under review, the fast commerce arm’s adjusted EBITDA loss was INR 162 Cr, compared to INR 178 Cr in the March quarter and INR 3 Cr in the quarter prior.
As Blinkit’s expansion drive proceeded, the adjusted EBITDA loss increased sequentially. During the quarter, it opened 242 new dark locations, bringing the total number of stores to 1,544. In Q1, Eternal invested INR 370 Cr in capital expenditures, of which about INR 310 Cr went towards growing its network of warehouses and quick commerce stores.
Albinder Dhindsa, CEO of Blinkit, stated that the company currently operates more than 5.6 million square feet of warehouse space nationwide, having added an additional 0.4 million square feet. Blinkit currently oversees over 10.4 million square feet of supply chain infrastructure, including the shop area. By December 2025, the company is expected to reach 2,000 outlets, he noted.
The National Restaurant Association of India (NRAI) has chosen to speak with Zomato this month after a flurry of restaurant complaints regarding the food tech giant’s recently implemented long-distance service charge.
According to various media reports, the restaurant industry association had preliminary talks with Deepinder Goyal, the CEO of Zomato parent company Eternal, about the matter and intends to meet with him this month to try to find a solution.
Zomato announced in May of this year that, regardless of order value, it would charge restaurants a service fee of INR 15 for deliveries within 4 to 6 km and INR 25 to INR 35 for deliveries over 6 km.
Restaurants are furious about this action. Zomato asserts that it sets a 30% commission cap on restaurant orders, but eateries complain that this cap has been violated as a result of the new long-distance price.
Why Restaurants are Unhappy with Zomato’s Long Distance Fee Move?
Zomato stated in an email that long-distance calls would cost between INR 25 and INR 35. The fee now stands at 35% for a customer who already pays 25% on a purchase of INR 250 plus an extra INR 25.
Then, Zomato claims that it will be limited to 30%. Thus, the structure is extremely complex and perplexing. According to the proprietor of a quick service restaurant (QSR), Zomato appears to be breaking the 30% commission cap by charging a long-distance fee.
According to NRAI, Zomato, not restaurant owners, chose to expand the delivery radius in order to expand the platform. Therefore, it is now their responsibility to find the answer. If they so choose, they are free to charge the person who is ordering food for this.
In addition to the long-distance charge, Zomato has angered restaurants by attempting to alter the conditions of its contracts with them. Zomato has been contacting eateries to sign a new contract under its parent company Eternal since May.
Restaurants, however, claimed that Zomato had covertly added a new provision to the contract that would allow it to sanction the former for failing to maintain pricing parity among food tech platforms. The majority of restaurants are not signing the new contract, according to a Zomato-listed restaurant partner quoted in the media.
NRAI Already Taken Legal Action Against Zomato and Swiggy
Since 2021, the NRAI has been fighting the two foodtech titans in court over their claimed anti-competitive behaviour. Additionally, the restaurant body has been at odds with Swiggy and Eternal regarding the meal options offered by their respective rapid commerce verticals, SNACC and Bistro.
Restaurants have therefore been searching for strong substitutes for the two platforms for a considerable amount of time. Although ONDC looked promising at first, its credibility as a viable alternative has been damaged by leadership turnover and a drop in retail food orders.
The NRAI has now partnered with Rapido to distribute food in a fresh attempt. Eternal’s decision to increase meal delivery fees comes as the company seeks to boost its top line despite the industry’s decline.
While Eternal’s rapid commerce vertical Blinkit grew 122% YoY to INR 1,709 Cr during the quarter, Zomato’s sales grew just 17.5% YoY to INR 2,409 Cr in Q4 FY25.
Several brokerages stated in separate notes that Rapido‘s entry into the food delivery market through a pilot in Bengaluru is unlikely to significantly upend the established duopoly of Zomato and Swiggy due to the business’s intrinsic operational complexity, capital intensity, and customer experience issues.
Bengaluru-based Rapido is getting ready to start its meal delivery service with a radically different price structure, opting for flat costs rather than the customary % commissions given to restaurants, according to a media report.
At a time when small restaurant operators are becoming more outspoken about growing aggregator expenses, the move put the ride-hailing company in a position to compete with Zomato and Swiggy.
For food orders under INR 400, Rapido will impose a set INR 25 fee; for orders beyond INR 400, the fee will be INR 50. The restaurant pays Rapido these fixed fees, which are subtracted from the order amount.
Rahul Malhotra of Bernstein, a premier global equity research and brokerage firm, pointed out that although Rapido intends to use its user base of more than 3 million to charge reduced take rates, new competitors have failed in the past. Malhotra pointed to earlier attempts by Ola, ONDC, and Amazon that didn’t scale because of a poor user experience, a fragmented supply, and a small range of restaurants.
Fragmented Food Delivery Market of India
With only about 10% of gross order value (GOV) coming from organised quick-service restaurants and the remainder from smaller eateries, India’s food delivery sector is fragmented, making it more difficult for entrants to reach scale.
Zomato and Swiggy, according to Bernstein, have already spent $2–3 billion developing their meal delivery networks and enjoy a large following of loyal customers. Swiggy had 252,000 active restaurant partners, while Zomato had over 314,000 as of Q4 Q4FY25. According to internal estimations, Bernstein estimated that Zomato and Swiggy held a 54% and 46% share of the meal delivery market, respectively.
Swiggy Leading the Race
Swiggy has been gaining market share in recent quarters. In Q4 Q4FY25, its food delivery GMV grew 18% year over year, surpassing Zomato’s 16% growth. The analysts said, “We do not anticipate material market share impact from Rapido’s entry,” noting that the service would initially be in a trial phase and would only be available in Bengaluru.
Bernstein stated that although Rapido might be able to attract previously unexplored eateries to its platform, especially those with low average order values (AOVs) in Tier 2 and Tier 3 cities, this will increase the market as a whole rather than reduce the number of customers that the incumbents have.
In a similar vein, HSBC referred to the current state of affairs as “déjà vu” for the food delivery sector, which had comparable anxieties during ONDC’s ascent in 2023.
Zomato is an Indian restaurant search, discovery, and online food delivery service. The food tech unicorn was founded by Deepinder Goyal and Pankaj Chaddah in 2008. Zomato is well known throughout the country and has also managed to venture into many international markets over the years. It currently operates in 10,000 cities in 24 countries, including the USA, India, Australia, Brazil, New Zealand, Singapore, the United States and in the Middle East Qatar.
Today, Zomato focuses on online food ordering, restaurant reservations, loyalty programs, consultant services, and a lot more. Zomato is also a food search engine that works the same as Google’s search engine but explores a wide range of food and restaurants. The company has grown from a home project to one of the world’s largest food aggregators. Zomato not only connects people to food in every context but also works closely with restaurants to enable a sustainable ecosystem.
With its unique and sustainable business and revenue model, as well as a well-defined organizational structure of Zomato, the company has managed to remain a top player in the market. Zomato has become successful because of factors such as affordability, easy accessibility, and assortment, which have built trust among people from the years of service. Zomato continues to work on finding innovative ways to serve its customers.
Zomato – History
Founders of Zomato – Deepinder Goyal and Pankaj Chaddah
Zomato, which was earlier known as Foodiebay, was established in July 2008 by two IIT graduates, Deepinder Goyal and Pankaj Chaddah. The idea first struck Deepinder when his colleagues consistently had a demand for paper menu leaflets from different restaurants to order food. That is when he thought of converting the restaurants’ paper menus to a digital app, which is far more accessible and easier to use.
In a matter of 9 months, the company grew to become the largest restaurant directory in Delhi and later expanded to other cities due to its success. By 2012, Zomato had started expanding internationally to countries like the UK, South Africa, Qatar, Sri Lanka, South Africa, New Zealand, Brazil, etc. During this course, the company had to change its name since its last four letters of ‘Foodiebay’ coincided with ‘eBay’; the company name was changed to Zomato in 2010 to avoid any legal issues.
In 2015, the company forayed into the food delivery business and went on to launch Gold in India, which was a subscription product under which subscribers would get access to complimentary food and drinks. Zomato also launched Hyperpure, which directly works with Farmers to improve the quality of food produce and supply fresh produce to restaurants. The company now views its business as a combination of three key large pillars: Delivery, Dining Out, and Sustainability.
How Zomato Works: A Simple Guide for Customers & Restaurants
How Zomato Works
Search Restaurants: Open the Zomato app or website, enter your location, and explore restaurants by cuisine, name, or deals nearby.
Check Details: Click on a restaurant to see its menu, prices, photos, reviews, hours, and delivery information, all in one place.
Place Your Order: Pick your favorite dishes, customize them to your liking, and add them to your cart.
Make Payment: Pay easily via card, net banking, wallet, or even cash on delivery (if available).
Track Delivery: Once the order’s confirmed, the restaurant prepares your food, and a Zomato delivery partner brings it right to your door. You can track the delivery in real-time.
Leave a Review: After your meal, rate the restaurant and share your feedback to help others.
Zomato also helps users discover new places and gives restaurant owners tools to manage their listings, menus, and reviews.
Zomato – Business Model
Zomato Business Model Canvas
During the initial phase of the company, Zomato used to scan the menu of the restaurants and keep it on the site, and the menu was received by people. It still follows the same formula but has also added other services to its operation. The business model of Zomato is quite different from that of other food delivery such as Swiggy and Foodpanda. The key partners of Zomato are Uber and London & Partners, which could launch Zomato in the UK within the expected timeline. The business plan of Zomato focuses on expanding its food delivery network, enhancing customer experience, and generating revenue through restaurant partnerships, advertisements, and subscription services.
While the company’s key resource is its large database of restaurants across 10,000 cities in 24 different countries, the business model is based on providing local restaurant search services, collecting data on food menu contacts, and providing relevant information to their customers. The main channels for Zomato are mobile applications and its website. The target audience of the company is the users who try to find local restaurants of various cuisines and restaurants who want their name to reach a large number of people. The Zomato working model is built around connecting customers with restaurants through online food ordering, delivery services, and real-time tracking.
Zomato also caters to customers who prefer home delivery; it helps out database and market research of companies. At the same time, the online service is built with a mandatory rating mechanism. Zomato’s business model has revolutionized the food industry by incorporating various restaurants and making it convenient for people to find restaurants, provide feedback, and food business industries by incorporating various listings and availability according to their choice of cuisine.
Zomato – Expansion & Impact
Zomato employs over 5,000 individuals, spanning diverse roles and compensation levels.
The monthly user base is 80 million users.
Zomato continually expands its platform, adding a new restaurant every 30 seconds.
Presence established in 24 countries.
Available in multiple languages, including Turkish, Portuguese, Indonesian, English, Hindi, and some regional Indian languages.
Zomato – Revenue Model | How Zomato Earns Money
Zomato Financial Snapshot
Zomato Yearly Financials
Particulars
FY24
FY23
Total Revenue
12,961 crore
7,760.9 Cr
Revenue from operations
INR 12,114 crore
INR 7,079.4 crore
Other income
INR 847 crore
INR 681.5 crore
Profit/(Loss) before tax
INR 291 crore
(INR 1,014.6 crore)
Tax expense
(INR 60 crore)
(INR 43.6 crore)
Current tax
INR 1 crore
INR 0.4 crore
Deferred tax
(INR 61 crore)
(INR 44 crore)
Profit/(Loss) for the year
Profit of INR 351 crore
Loss of INR 917 crore
Zomato, in itself, does not offer the products to customers, but the revenue model of Zomato is massive. Zomato is not just a food business; it is also in the advertising business. Zomato turnover has seen significant growth over the years, reflecting the company’s expanding presence in the online food delivery market. Zomato’s business has two parts: one is the delivery business, and two is the advertising business. Today, Zomato has multiple revenue streams besides online ordering, which most consumers would be familiar with. Zomato’s profit for the year 2024 was INR 351 crore.
Zomato Expense Breakdown
Zomato Expense Breakdown
FY24
FY23
Total Expenses
INR 12,670 crore
INR 8,775.3 crore
Purchase of stock-in-trade
INR 2,887 crore
INR 1,438.2 crore
Changes in inventories
(INR 5 crore)
(INR 43 crore)
Employee benefit expense
INR 1,659 crore
INR 1,465 crore
Finance costs
INR 72 crore
INR 48.7 crore
Amortization & Depreciation
INR 526 crore
INR 436.9 crore
Other expenses
INR 7,531 crore
INR 5,429.5 crore
Zomato saw growth in FY24, with its operating revenue increasing by 70.8%, reaching INR 12,114 crore compared to INR 7,079.4 crore in FY23. The company also turned profitable, posting a profit of INR 351 crore in FY24, compared to a loss of INR 917 crore in FY23. However, total expenses increased by 44.4% to INR 12,670 crore in FY24, up from INR 8,775.3 crore in FY23.
Restaurant Listings and Advertising
Zomato first started as a restaurant search and rating service. This brought in the advertising revenues from restaurants who joined the platform. They further extended this feature to food delivery and restaurant reservations; for this, Zomato charges commissions from restaurants that want to be placed on the feed. Advertising is Zomato’s major source of revenue. The restaurants can promote their banner on the site in order to get better visibility and appeal to a large section of the audience via Zomato.
Food Delivery
Zomato Revenue Model – Food Delivery
Through the food delivery business, Zomato charges a commission to the restaurants based on orders. The company earns through restaurants that pay a commission for each delivery, which is then split among the delivery partners and the company. Zomato imposes a commission ranging from 20% to 25% on each order made at a specific restaurant, with potential variations in commission rates from 5% to 7% in certain regions. However, online food delivery only contributes a low percentage of income compared to other revenue streams because of the huge competition and the need to provide deep discounts.
Subscription Programs
The next major source of revenue for Zomato is a subscription fee. Restaurants pay a certain fee monthly; in return, Zomato offers them the analytical tools. Zomato has a huge number of databases that know what a customer wants to eat, where he/she wants to eat, and what the consumers are searching for, and itis given to restaurants, which helps them know about all this information through the cookies. It has a tool called Zomato Order which is given to restaurants, which tells them about consumers’ interests. The restaurants then use this tool to flash their discount offers on food.
Live Events
Zomato Revenue Model – Zomaland
Zomato has forayed into the events space by partnering with restaurants and creating limited events. By which they made a sale through the price of the tickets. Zomato recently introduced Zomaland and entered the live event market in 2019. Zomato charges users an entry fee to attend Zomaland, where, besides food, they can witness live musical performances and other acts. Zomato also organized an entertainment carnival in 2018 in Delhi, Pune and Bengaluru, where more than 100 thousand people showed up.
White Label Access
The next source of revenue is app development. Zomato launched a service called Zomato Whitelabel, under which they give offers to restaurants to develop customized food delivery apps. It also works with cloud kitchens and restaurants for consultancy services. Zomato works with selected restaurant operators to help in identifying locations for expansions at a minimal fixed cost but with increased options for the user. It provides the requisite licenses and operational enablement for such restaurant partners.
Zomato studies how people use its app and how restaurants perform. It shares this information with restaurants and others in the food business. This helps restaurants improve their menu, prices, and promotions. Zomato also uses the data to make its app better. It earns money by charging a fee for sharing this data.
Zomato Kitchens
Zomato also provides kitchen infrastructure services to select restaurant operators; it works with entrepreneurs to set up and operate Zomato kitchens under various other labels. This helps entrepreneurs fund restaurants in the right location with an investment of INR 35 lakhs. It also claims to offer returns in the range of INR 2 lakh to INR 4 lakh per month to investors and has so far completed more than 180 affiliated kitchens.
Zomato Gold
Zomato Revenue Model – Zomato Gold
Zomato Gold is a premium subscription service offered by Zomato, providing members with exclusive dining benefits. Subscribers enjoy complimentary dishes or drinks at partner restaurants, making dining out a more rewarding experience. The service aims to enhance the dining lifestyle by offering special privileges and discounts at a wide range of top-rated eateries. Zomato Gold caters to food enthusiasts seeking unique culinary experiences while enjoying cost-effective perks. It has become a popular choice for those who appreciate both quality dining and savings.
The total revenue generated by Zomato in FY 22 was INR 4192 crore whereas its turnover in FY 2023 was INR 7079 crore.
The business model of Zomato offers a variety of value to its customers, while Zomato’s revenue model focus has been on creating something new and extra that the customers cannot get anywhere else. Zomato is a one-stop shop for dinners and offers a way for restaurants to differentiate themselves. Restaurants have an option to create differentiation by keeping the listing updated, responding to criticism positively, and also by being accountable for their action.
Zomato’s business plan believes in creating value for its customers to sustain its business operations. The company endeavors to bridge the gap between customers and restaurants by providing efficient technology applications, which, as outlined in the business plan, has played a crucial role in reducing delivery times and enhancing overall service quality. Zomato business plan focuses on food delivery, restaurant listings, and data insights to create a profitable and scalable model in the food tech industry.
FAQs
What is Zomato?
Zomato is an online platform that offers food delivery and helps users discover restaurants with various dining options available.
What is Zomato Business Model?
Business model of Zomato is a commission-based model, charging restaurants a percentage fee for orders through its platform. Revenue is generated via subscription services, including Zomato Gold, which grants exclusive dining benefits.
How Zomato works?
Zomato connects users with restaurants by allowing them to browse menus, read reviews, and order food for delivery or pickup. It also offers table reservations and subscription services like Zomato Pro for discounts. Restaurants can list their services and manage orders through the platform.
What is the revenue of Zomato?
Zomato’s revenue is ₹12,961 crore (2024).
How to contact Zomato for business?
You can contact Zomato through email to start a business with them.
What is Zomato for business apps?
The Zomato for Business app is for business owners. It is an interface with powerful features to get the most out of your Zomato listing.
Zomato operates in how many countries?
Zomato operates in 10,000 cities in 24 countries, including the USA, India, Australia, Brazil, New Zealand, Singapore, the United States, and in the Middle East Qatar.
What is Zomato revenue model?
Zomato’s revenue model is based on several key sources. It earns a commission from restaurants for each food delivery order placed through its platform. Additionally, Zomato generates income from advertising by allowing restaurants to pay for premium listings and visibility. The subscription service Zomato Pro brings in revenue from users who access discounts and exclusive deals. Zomato also makes money through Hyperpure, which supplies quality ingredients to restaurants. These revenue streams help Zomato sustain and grow its business.
What are Zomato products and services?
Products and services offered by zomato include food delivery, restaurant discovery, and table reservations. It allows users to explore local dining options, read reviews, and place orders online. Zomato Pro offers members discounts at partner restaurants, while Hyperpure supplies fresh ingredients to restaurants. These services help Zomato connect customers with restaurants and enhance the dining experience.
The food delivery segment in India has witnessed an unprecedented surge. Late-night cravings, urgent home delivery, etc., have now become the norm. Despite being a huge potential market in India at present, only 2-3 brands dominate this industry, and Zomato is one of them.
Zomato is an Indian restaurant aggregator that delivers food in almost every Indian city. Zomato provides a complete reference for a restaurant. Right from menus to reviews, it covers all the aspects centered around a restaurant.Now, the question in your mind would be, who found this brilliant startup to curb all your midnight cravings? It was founded by Deepinder Goyal and Pankaj Chaddah.
Zomato is gradually building on its global presence. They have acquired about 15 startups in different countries, including foreign competitors, to increase their foothold in other countries. In 2014, Zomato acquired Gastronauci, Poland’s restaurant search service, and Cibando, an Italian restaurant finder. They made their biggest acquisition in 2022 by acquiring India-based Blinkit (formerly Grofers) for an estimated $560 million in an all-stock deal.
Initially named Foodiebay when it began in 2008, the venture was later renamed Zomato in 2010.
Zomato Limited, the parent company of Zomato, has officially changed its name to Eternal Limited as of March 20, 2025, following approvals from both shareholders and the Ministry of Corporate Affairs. Despite the name change at the corporate level, the Zomato brand and app will continue to operate as usual, with no changes to its identity or services.
Deepinder Goyal Biography
Name
Deepinder Goyal
Born
26th January, 1983
Birthplace
Punjab, India
Education
Indian Institute Of Technology, Delhi
Wife
Grecia Munoz
Position
Co-founder and CEO of Zomato, Director of Upslope
Net worth
$1.7 billion, (October 2024)
Let us look at Deepinder Goyal story, education, personal life, controversies, life story, and history of someone whose current net worth is $1 billion.
Deepinder Goyal was born into a humble family in Muktsar, Punjab, on 26 January 1983. Zomato CEO Deepinder Goyal recently married Mexican model-turned-entrepreneur Grecia Munoz. Reports indicate that the couple tied the knot a few months ago. This is Deepinder Goyal’s second marriage; he was previously married to his IIT-Delhi batchmate, Kanchan Joshi.
Deepinder Goyal – Education
Hailing from a middle-class family, the Zomato founder, Deepinder Goyal, had a modest upbringing. After completing his graduation from the prestigious Indian Institute of Technology, Delhi, in 2005 in Mathematics and Computing, his interest in food was encouraged to conceive a venture that would help people have their lunch, breakfast, and dinner through the convenience of an app.
Deepinder Goyal – The Idea of Zomato
Ordering food from home wasn’t easy initially. To order food online, one had to choose from multiple restaurants without any information about the reviews and ratings. Discounts and offers on dining and food delivery were almost non-existent.
After graduating from IIT Delhi, Deepinder joined Bain and Company as a Senior Associate Consultant in January 2006. During his tenure with Bain, he founded FoodieBay.com, which later became Zomato.com. The idea of FoodieBay.com was his eureka moment. At Bain and Company, everyone had to stand in long queues to place their order. Deepinder and his colleague at Bain, Pankaj, came up with a creative solution to save the time they spent ordering food.
It was then that the duo decided to create a website for food ordering for Bain employees using the company intranet. To their surprise, the website was a hit and received heavy traffic. The Zomato founders saw an opportunity that could revolutionize the food tech industry.
Deepinder’s idea kick-started a new era. Neither he nor his colleagues thought that their idea would give rise to one of the most popular food aggregation brands.
After their experiment and the response they got from it, they were forced to add more restaurants to the list. By the end of the year, FoodieBay.com was introduced in mega-cities like Kolkata and Mumbai. In the year 2010, their startup started serving customers in Pune and Bangalore.
Deepinder Goyal recently joined India’s billionaire club following a surge of over 300 percent in Zomato shares since last year, reaching a market cap of INR 1.8 lakh crore, according to Moneycontrol. At 41, Goyal has also become India’s richest professional manager, with a net worth exceeding INR 8,300 crore.
Deepinder’s initial hurdle came from his family, who were reluctant to leave his stable job at the firm and join the startup journey and lifestyle. Deepinder’s wife, Kanchan Joshi, whom he met at IIT, was reluctant initially but later supported his new lifestyle completely. After establishing the startup in big cities, the Zomato owner hired Gunjan Patidar, another IITian, to assist the team in Operations. He had a hectic time running FoodieBay.com since the concept was unique and unknown to people at that time, and difficulties were inevitable. He had to face numerous entrepreneurial problems to convert his hard work into success. During the first two years, they ran the website without any hurdles but found it difficult to scale as more and more restaurants and pubs were being covered under Zomato. It was also a difficult time for them due to dwindling financial resources and trouble in securing funding.
Deepinder Goyal – Raising funds for Zomato
When the Zomato team desperately needed funding, Info Edge came to its rescue. In August 2011, Info Edge invested $1 million in FoodieBay.com, which was when Zomato founder Deepinder Goyal and his team changed the company’s name to Zomato.com. The funding was a morale booster that prompted Deepinder and Pankaj to quit their jobs at Bain and Company and dedicate all their time to the growth of Zomato.
After this, the food delivery and ordering trend took India by storm, turning the tide for Zomato. Since their initial funding in 2011, they’ve gone on to be funded by several investors and achieved the status of a unicorn in 2018. They ended 2020 by closing a $660 million primary financing round at a post-money valuation of $3.9 billion.
With rapid developments in the technology sector, Zomato modified its ways and launched its applications in iOS, Android, and Windows. Increasing popularity gave way to expansion in cities like Chennai, Hyderabad, and Ahmedabad.
After expansion, Zomato collaborated with Citibank, which was named “Citibank Zomato Restaurant Guide.”
The company is now publicly traded. On July 23, 2021, the shares were listed on the BSE and NSE. Its IPO price range was INR 72 to INR 76 per share. The market capitalization of Zomato is $29.94 billion (as of April 2025). It is the 817th most valuable company in the world based on market value.
Deepinder Goyal – The Dream Flight
Zomato Financial Snapshot FY24
Under Zomato CEO Deepinder’s guidance, the company expanded its operations in countries such as Dubai, UAE, Sri Lanka, Qatar, the United Kingdom, South Africa, the Philippines, and New Zealand.
During FY 2011-2012, Zomato Media Pvt. Ltd. reported revenues worth INR 2.04 crores, which ballooned to INR 11.38 crores during the financial year 2012-2013.
Zomato had around 2.5 million visitors on its website in March 2012. This increased exponentially to 62.5 million during 2014. Their revenues surged too, INR 30.06 crore generated in 2012 as revenue increased to INR 96.7 crore in 2015. Zomato recorded a growth rate of 68.9% in its gross revenue, reaching INR 7,079 crores in FY23.
In Q3 FY25, Zomato posted a revenue of INR 5,405 crore, marking a 64.4% increase from the previous year. However, its profit declined by 57% year-on-year to INR 59 crore due to rising expenses.
Zomato co-founder and CEO, Deepinder Goyal, has launched a new health and wellness startup called ‘Continue’ on 21st October 2024. This venture is focused on health tracking and mental wellness. The website, Continue.com, is still in a secretive “stealth mode,” so not many details are available yet. The company, called Upslope Advisors Pvt Ltd, was registered in April 20. Deepinder Goyal is a Director, and two Zomato employees, Akriti Mehta and Simrandeep Singh, are listed as Additional Directors, based on information from the Ministry of Corporate Affairs. This is Deepinder Goyal’s personal venture at this point.
Update on Continue
Been getting a lot of curious messages since the morning, so here’s an update on Continue.
It is as of now, my personal health and wellness team, entirely funded by me, which tracks and researches how to keep me running at my peak performance.
Deepinder has shown how to grow a business by setting up examples for his co-workers. Working for 24 hours is never a cakewalk, especially when there’s pressure from parents upon leaving a well-settled job. Under his guidance, Zomato has received multiple awards, mostly user choice, which proves customer satisfaction. At the age of 31, Deepinder Goyal, the founder of Zomato, won the Economic Times Startup of the Year. Rising from the lowest moments of despair and distress to revolutionizing an entire segment is no simple feat. That’s what Deepinder Goyal has achieved. A millennial cannot imagine life without Zomato—Deepinder has taken his venture to enviable heights!
Deepinder Goyal – Shark Tank India
Shark Tank India Judges – Anupam Mittal, Namita Thapar, Deepinder Goyal, Vineeta Singh, Aman Gupta
Deepinder Goyal was one of the new sharks on Shark Tank India season 3. At the age of 40, he became an inspiration to young people and has chosen to impart his knowledge to aspiring entrepreneurs. He joined Ritesh Agarwal, the founder and CEO of OYO Rooms, Azhar Iqubal, the co-founder and CEO of Inshorts, and the returning sharks Aman Gupta, Anupam Mittal, Namita Thapar, Vineeta Singh, and Peyush Bansal on the panel.
The Zomato founder invested in unique and scalable firms in Shark Tank India season 3. He was particularly interested in businesses that were challenging the status quo and had the ability to make a significant difference in people’s lives. Goyal’s addition to the panel of sharks was indeed more exciting and informative.
Deepinder Goyal wrote this on his social media:
All growth comes from discomfort.
I am here to learn, step outside my comfort zone, and add my two special cents to something crazy.
This is turning out to be a weekend well spent outside of @zomato.
As per reports, the food delivery platform and Zomato’s competitor, Swiggy is close to finalizing a deal to sponsor the fourth season of Shark Tank India season 4. Swiggy has requested that Zomato CEO Deepinder Goyal not return as an investor, according to Goyal. This decision highlights the growing competition between the two food delivery companies.
“I unfortunately can’t go back because Swiggy sponsored Shark Tank this time and kicked me out,” Goyal said at the ET Startup Awards 2024 on 5th October, 2024.
“Apparently, that’s what I heard. They (Swiggy) said that this is the sponsorship, and DP (Deepinder Goyal) can’t be on the show,” he added.
In March 2025, a public clash happened between Zomato CEO Deepinder Goyal and Zepto CEO Aadit Palicha over the quick commerce market. Goyal said the industry was losing around INR 5,000 crore every quarter, and blamed Zepto for more than half of it.
Palicha replied on LinkedIn, calling Goyal’s claims “verifiably untrue.” He said Zepto’s financials would prove him wrong, but still showed respect for Goyal, calling it possibly a mistake.
Later, Palicha accused a rival CFO of spreading lies to investors and using social media bots to damage Zepto’s image.
This dispute shows the rising tension in the fast-growing quick commerce space in India.
Deepinder Goyal started a debate on 20th November 2024 by offering a Chief of Staff job with a strange condition. In this job, the applicants must pay INR 20 lakh to get the job, and there will be no salary at first. Goyal said this Chief of Staff job will give 10 times more learning than a two-year course at a top business school. Another benefit is working closely with him and some of the smartest people in consumer tech.
The job post got mixed reactions on social media. Many users said it is unfair to talented people from less wealthy backgrounds who can’t pay INR 20 lakh upfront or cover their basic needs for a year.
A day after this controversial Chief of Staff job post, Goyal said on 21st November 2024 that they got over 18,000 applications. He explained that the INR 20 lakh fee was just a way to filter candidates and wouldn’t actually be charged.
Deepinder Goyal – Investments
Deepinder Goyal has made 22 investments. His most recent investment was in March 2025, in LAT Aerospace of $20 million, a new startup he co-founded with Surobhi Das, the former Chief Operating Officer (COO) of Zomato.
People’s eating habits have changed significantly, specifically because of the lockdown. People become more familiar with ordering food online from the convenience of their homes. Two players, Zomato and Swiggy, dominate the Indian food delivery industry.
Food delivery businesses got paced during the lockdown period. According to the research report of the ETC group, Swiggy is the ninth biggest food delivery company in the world, and Zomato is the tenth biggest.
Both these companies are adopting and experimenting with new things to dominate the market. So here we are with the full analysis to let you know who will win the food delivery race.
The Indian food delivery industry was valued at $156.75 billion in 2024, which is growing at a 10.7% CAGR every year and is expected to reach around $173.57 billion by 2025. Since the growth is not steady and it fluctuates depending on various factors, it is still one of the fastest-growing industries in India.
The industry has shown tremendous growth over the past couple of years. The main reasons behind the growth are as follows.
Annual Revenue of Swiggy and Zomato (FY2022 – FY2024)
Swiggy Vs Zomato: The Ultimate Comparison
Feature
Swiggy
Zomato
1. App Interface
Simple, fast, user-friendly
Fun, witty, review-rich
2. Delivery Speed
Fast & reliable
Varies, often slower
3. Pricing
More discounts, value deals
Premium rates, Pro needed
4. Market Reach
Strong in smaller cities
Dominates big metros
5. Food Options
Wide range + groceries (Instamart)
Fine dining + Blinkit partnership
6. Customer Support
Fast, helpful chat support
Slower, slightly delayed responses
7. Subscription Plans
Super: Free delivery, no surge
Pro: Dine-in perks, fewer offers
8. Marketing Style
Aggressive, influencer-driven
Witty, meme-based, community-first
Swiggy Vs Zomato: The Ultimate Comparison
Innovations of Zomato
Zomato always strives for different innovative stuff to improve customer experience. Some innovations are the next level try, which has the capabilities to disrupt the market. Let’s have a closer look at what Zomato has done so far to stay ahead in the food delivery race.
Zomato Hyperpure
Swiggy vs Zomato – Hyperpure by Zomato
Hyperpure is one of Zomato’s initiatives to provide fresh and high-quality ingredients to restaurants. Restaurants can choose from 1200+ ingredients and kitchen products, which will be directly delivered to the restaurant’s address. Now, there is no headache for restaurant owners buying kitchen commodities for daily use.
For product outsourcing, Zomato has a network of professionals that includes farmers, mills, producers, and processors. Sellers on Hyperpure are verified and only those sellers are appointed who are looking for a long-term partnership.
10-min Delivery by Zomato Instant
Swiggy vs Zomato – 10 min Delivery by Zomato Instant
According to Zomato, sorting restaurants by delivery time is the most used feature in the app. This shows that customers want quicker delivery; they don’t want to wait. Zomato recognized this and launched Zomato Instant, which is a 10-minute food delivery service for restaurants.
After listening to Allforthis, you might think that Zomato is putting extra pressure on its delivery partners and restaurant partners, but it’s not like that. According to Zomato, their delivery partners are not informed about the promised delivery time, nor are they penalized for late delivery.
All this delivery works on a demand prediction algorithm. There is a network of finishing stations located near the high-demand area for the fulfillment of each order.
Ordering legendary and famous foods from any state to your home is the concept introduced by Zomato. Now you can order biryani from Hyderabad and rasgullas from Kolkata, and they will be delivered to you the next day. ‘Intercity Legends’ is a way to enjoy iconic dishes from different cities and states.
‘Intercity Legends’ is still in the pilot stage, but the response is extremely good. It is available for selected customers in Gurgaon and some parts of South Delhi. But the innovative step taken by Zomato to bring iconic of different states to our doorstep is appreciable.
Your order reaches you via a flight with proper packaging; there is a proper logistics system designed to deliver the order to you within the given time.
Voice Instructions for Delivery Location
Mapping in India is not that precise, and sometimes, it is hard to find locations based on written delivery addresses. Zomato, which always tries to enhance user experience, brings a new feature in its app that allows users to provide voice instructions for directions to their homes.
To use this feature, you need to click on the delivery direction tab and then hold the record button to give the information related to your delivery location. This feature is helpful because sometimes delivery partners face issues in finding the delivery location, and they need to call the customer, which ultimately delays the delivery and leaves a bad taste in customer satisfaction.
Street food is the best, cheapest, and most tasty alternative we prefer over restaurants. Sometimes we are used to eating food from any street vendor and often say, ‘Chal kallu ke chhole bhature khane Chalte hai.’ These street vendors suffered a lot during the lockdown period.
Zomato, in collaboration with the Government of India, started an initiative to bring this street vendors onto its platform. The government launched the Prime Minister Street Vendor’s AtmaNirbhar Nidhi scheme (PM SVAnidhi scheme) to provide working capital loans and increase digital payments for these vendors.
So far, Zomato has onboarded approximately 965 street vendors on its platform across different cities like Vadodara, Bhopal, Nagpur, Jabalpur, and Ludhiana.
Zomato AI
Swiggy vs Zomato – Zomato AI
Zomato, a top food delivery company, has launched an AI-based customer support tool called Nugget. This new step is part of the company’s plan to use more technology and reduce manual work. Zomato, a top food delivery company, has launched an AI-based customer support tool called Nugget. This new step is part of the company’s plan to use more technology and reduce manual work. As a result, Zomato has let go of 600 customer support employees.
The goal of Nugget is to make customer service faster and more efficient. With AI growing quickly, more companies like Zomato are now choosing smart bots to handle customer queries instead of relying only on human staff.
This move shows Zomato’s focus on using advanced technology to improve how they work and help customers. It also points to a big change in the food tech industry, where automation and AI are becoming the new normal for better service.
The goal of Nugget is to make customer service faster and more efficient. With AI growing quickly, more companies like Zomato are now choosing smart bots to handle customer queries instead of relying only on human staff.
This move shows Zomato’s focus on using advanced technology to improve how they work and help customers. It also points to a big change in the food tech industry, where automation and AI are becoming the new normal for better service.
Earlier, Zomato launched something super cool called Zomato AI, and it’s like having a foodie friend in your pocket! The best part? It can do many things simultaneously, making it a multitasking food guru.
Let’s say you’re craving a specific dish. Well, Zomato AI can show you a list of all the places around you that serve exactly what you’re hankering for. And if you’re feeling indecisive about what to order, no worries! Zomato AI can suggest popular dishes or great restaurants to make your decision a breeze.
But what makes it even cooler is how you can chat with it just like you would with a friend. You can send multiple messages, and Zomato AI responds almost instantly, making the whole experience smooth and natural, unlike other AI things that only handle one message at a time. Zomato AI is like your foodie BFF, ready to help you out with any food-related question you throw at it.
Swiggy is also not behind in the race for innovation; Swiggy has taken various steps to improve its delivery services and user experience.
AI to Improve Delivery Services
Swiggy is using AI to enhance user experience across its platform. Its AI-powered neural search allows users to find food and groceries in a conversational way, offering personalized recommendations. For dining out, Swiggy is developing a generative AI-based Dineout bot that helps users discover restaurants based on their preferences. Additionally, the company is building AI-driven tools to support its network of restaurant and delivery partners, streamlining operations and improving service quality.
Swiggy is using AI technology to fill the loopholes present in the different stages of delivery. Swiggy has improved its AI to the extent that delivery executives can’t change their status to ‘Arrived’ before they reach the restaurant. Everything is connected with GPS for location tracking to ensure transparency.
Data is the fuel for today’s world, and this company is leveraging it very efficiently. AI is used for the future prediction of orders, customer behavior, and interaction with the help of previously available data.
With the help of AI, Swiggy provides a personalized list of restaurants based on your previous order, reviews, search, and interaction. It also recommends different dishes that you are most likely to order.
The first membership program launched by Swiggy was Swiggy Super in 2018, which provides free delivery on restaurant orders. Since then, Swiggy has launched different services, like Instamart and Swiggy Genie, to boost its quick commerce.
So, despite installing the different apps and using these services separately, Swiggy has integrated all these services under one roof called Swiggy One. Now, users have to install only one app, which is Swiggy, create only one account, and buy only one membership plan offered by Swiggy.
Just by using one app, users can order food from the restaurant, buy groceries using Instamart services, and deliver anything with Swiggy Genie. Benefits like discounts and free delivery can be availed by membership users.
Swiggy One
Delivery by Drone
Zomato vs Swiggy – Swiggy Delivery by Drone
The food-tech space in India is going through a revolution phase. Swiggy is working on providing delivery using drones, and multiple pilots are conducting tests to make this concept operational. The whole concept revolves around transferring the goods from the dark stores to the nearest seller location of the customer.
Garuda Aerospace commenced the first trial in Delhi-NCR and Bengaluru to use drones for grocery delivery. Based on the performance of the first trial in Bengaluru and Delhi-NCR, Swiggy will conduct a second trial with ANRA technology, Techeagle, and Marut drone tech.
Multimedia Card Insights: Enhanced User Experience
Providing a better Customer Experience is the way to build long-term trust among customers. Today, companies are doing so many things to enrich the user experience on their platforms. They know very well that a bad user experience will directly lead to a decrease in customer base.
Swiggy has launched a new innovative multimedia card insights, which is a new way to showcase the product overview. Images and Lottie animations are old; things have changed in this new era. In this new multimedia card, informative videos are used to show the product’s features.
Swiggy, the food and grocery delivery service, has introduced a new feature called Pocket Hero. It’s like a money-saving sidekick for users who want to spend smart. It’s being tested in Delhi, giving you extra cashback and discounts of up to 60% on food orders from specific restaurants. You can enjoy these benefits at five places: Pink Box, 34 Chowringhee Lane, Cold Love Ice Cream, The Chai Story, and Chai Chapter.
“Pockethero aims to make food delivery accessible to a set of users who today may find online food delivery less value for money … Pockethero delivers the best of discounts from our partner restaurants and gives free delivery on top of it to give our customers a taste of convenience without having to think much about their pockets,” said Sidharth Bhakoo, VP, National Business Head at Swiggy.
Figure Overview: Zomato vs Swiggy
Zomato Vs Swiggy
Facts
Zomato (Eternal Ltd)
Swiggy
Number of Restaurants
~3.14 lakh partners
2.5 lakh+ partners
Cities Covered
800+ cities
700+ cities
App Downloads
100 million+
100 million+
Number of Employees
7,331 employees
5,401 employees
Revenue (FY24)
INR 7792 crore
INR 6082 crore
Total Funding Raised
$3.4 billion
$3.8 billion
Google App Rating
4.7 / 5
4.4 / 5
Marketing of Zomato
Zomato’s top-notch marketing strategy always supports its presence in the market. The food delivery industry has never been so interesting, but things have changed now. Let’s have a look at some of the popular marketing of Zomato.
Zomaland
Swiggy vs Zomato – Zomaland by Zomato
Zomaland is a carnival consisting of the best restaurants, powerful performances, amazing attractions, and a plethora of other events, making this a food festival.
Started in 2019, this food carnival of Zomato became successful by hosting 1.5 lakh+ visitors, 300+ restaurants, and serving more than 3.5 lakh dishes. Many famous artists like Badshah, Hardy Sandhu, Divine, and many more were reported to perform in order to entertain the visitors.
Now, Zomaland season 2 has arrived with full energy in cities like Pune, Ahmedabad, Mumbai, New Delhi, Kolkata, Bengaluru, and Hyderabad. This marketing event by Zomato is one of the most popular and successful.
Meme and Creative Marketing
Swiggy vs Zomato – Zomato Creative Marketing
Meme and creative marketing of Zomato are the best in the industry. If you look at the social media handle, you will find so many creative marketing memes that connect with the audience and, interestingly, convey the message.
Paid Advertising Campaigns
While paid advertising is typically a short-term marketing approach, its impact on maintaining engagement cannot be overlooked. Zomato strategically utilizes paid advertising, complementing its organic optimization efforts to enhance brand visibility in search results. The key to Zomato’s advertising lies in audience retention.
Employing Google Ads, Zomato precisely targets specific customer segments. These paid ads, seamlessly integrated with organic results, enable the brand to reach a broad spectrum of keywords that might be challenging through organic efforts alone. Zomato’s marketing campaigns predominantly involve paid advertisements, serving as a proactive means to connect and sustain engagement with their audience.
Marketing of Swiggy
Zomato vs Swiggy – Why is This a Swiggy Ad?
The marketing campaign is an integral part of Swiggy; it gives neck-to-neck competition to its biggest rival, Zomato. Swiggy’s recently launched marketing campaign is the best example of it.
Why is this a Swiggy ad? It is a marketing campaign introduced by Swiggy in which you have to answer, ‘Why is this a Swiggy ad?’ After looking at the picture published by Swiggy.
This marketing move grabbed the attention of many customers because of the challenge they had given. Swiggy also announced Rupees 1 lakh worth of Swiggy money to the person who gave the right answer.
Approximately 800,000 people participated online with their theories behind the campaign, making it one of the most successful Swiggy user-generated campaigns. The question “Why is this a Swiggy ad?” was one of the most searched topics on Google that week.
Email and Social Media Marketing
Zomato vs Swiggy – Email and Social Media Marketing
Regularly engaging with its customer base, Swiggy employs dynamic email campaigns featuring captivating graphics, catchy slogans, and irresistible deals. The brand strategically enhances its email content, especially during major events like the Indian Premier League, the World Cup, and the Olympics, entertaining and ensuring relevance and heightened consumer interest during these periods.
Across various social media platforms, Swiggy maintains a robust presence. Their innovative use of hashtags, such as #EarnYourCheatMeal, #NoOrderTooSmall, and #EatYourVeggies, exemplifies the brand’s creativity in connecting with its audience. Swiggy leverages humor in posts, cleverly weaving current trends into content that entertains and aligns with the company’s services and vision. This multi-faceted approach reflects Swiggy’s commitment to staying dynamic, entertaining, and closely connected to its customers.
PPC Advertising Strategy
Swiggy, the big food delivery company, is good at using online ads. They choose specific words (like “food delivery near me”) that people often type when looking for food. They also use catchy phrases for specific cravings, like “midnight chicken delivery.” Swiggy shows its ads to the right people by avoiding words that don’t match, like “homemade food.”
Their short and clear ads talk about quick delivery and good deals. They create a feeling of urgency, like saying, “Order now!” Swiggy makes ordering easy by designing its website and app to be simple and quick, especially on phones. They even suggest dishes based on what you might like. Swiggy doesn’t use the same ads everywhere; they change them for Google, Facebook, and others, depending on where people are looking. They also test different ads to see what works best and keep improving. Swiggy also does things like reminding people about their orders or making special holiday ads. They work with popular restaurants and influencers to reach more people and make their brand trustworthy.
Conclusion
In the competitive landscape of food delivery services, the Swiggy vs Zomato comparison reveals interesting dynamics. Both companies excel in delivering quality food, but Zomato currently holds a stronger position in terms of market share, marketing strategies, innovation, and successful acquisitions. On the flip side, Swiggy takes the lead in prioritizing the well-being of its delivery executives, a crucial factor contributing to heightened consumer satisfaction. Zomato or Swiggy which is better, depends on what you prefer—faster delivery and groceries with Swiggy, or detailed reviews and a fun app with Zomato. The Swiggy vs Zomato debate showcases the nuanced strengths of each, with Zomato dominating certain business aspects while Swiggy takes a commendable lead in ensuring the welfare of its delivery workforce.
FAQs
What are the top 3 food delivery apps?
The top 3 food delivery apps in India are Zomato, Swiggy, and Domino’s.
Is Swiggy successful in India?
Yes, Swiggy is considered a successful startup in India. Regardless of its rough path, it has successfully created a great example in the market for other startups to learn from.
Swiggy or Zomato which is best?
Choosing between Zomato and Swiggy depends on your priorities. Zomato shines in restaurant discovery and reviews, while Swiggy excels in delivery speed and interface. Ultimately, the “best” depends on what matters most to you: food research or swift delivery.
Is Swiggy losing to Zomato?
As for the insights shared by Jefferies, the gross value of Swiggy’s food delivery operation in the first half of 2022 was $1.3 billion, whereas Zomato recorded $1.6 billion of the order value for its food delivery operations. From this, it can be estimated that Swiggy has lagged at several points to Zomato. However, the real winner is still a debatable topic.
Is Swiggy ahead of Zomato?
Both companies are fierce in their competition. When we talk about gross value, Swiggy lagged behind Zomato. However, with the acquisition of a quick commerce platform, Blinkit, Swiggy crossed Zomato in the quick commerce space to capture all e-commerce markets and move ahead of Zomato.
Zomato, a key player in the foodtech industry, has allegedly begun collecting a new “long-distance service fee” for orders that are delivered more than four kilometres. The company would now charge its clients INR 15 for deliveries within a 4- to 6-kilometre radius if the order value exceeds INR 150, according to a media report that cited people familiar with the situation.
Depending on the city, the fee for orders over 6 km will range from INR 25 to INR 35. According to the report, the foodtech giant assured its restaurant partners that, excluding other expenses, the total service fees, including this additional distance charge, would not exceed 30%.
However, according to some eateries, their overall commission fees may reach 45%. The news occurs weeks after the company’s fourth quarter financial results were released, which showed that despite a solid topline growth, its bottomline suffered greatly due to rising competition in the rapid commerce industry and stubbornly high expenses.
Zomato Realigning its Business Strategies
While operating revenue soared 64% to INR 5,833 Cr in the quarter under review from INR 3,562 Cr in the previous year, Zomato parent company Eternal’s consolidated profit after tax (PAT) fell 77.8% to INR 39 Cr in Q4 FY25 from INR 175 Cr in the same period last year.
In an effort to boost its bottom line, the foodtech behemoth founded by Deepinder Goyal is reportedly raising prices and taking away some privileges from its customers and restaurant partners.
Zomato Also Altering its Gold Membership Benefits
Zomato recently introduced a significant modification to its Gold membership benefits: starting on May 16, users who were already enrolled in its Gold membership plan will be subject to an extra rain fee.
The platform cost, which is now INR 10 per order, was previously increased by the corporation four times in the last year alone.
In light of this, the Competition Commission of India (CCI) declared in April that the foodtech giant’s platform fees, food prices, and delivery fees did not constitute unfair or discriminatory conduct.
Competition is Getting Tougher as Swiggy Rolls Out New Scheme for Corporates
To further strengthen its food delivery business, listed foodtech firm Swiggy has established a corporate rewards programme, just days after unveiling a new initiative to attract students.
The CEO of Swiggy’s food marketplace segment, Rohit Kapoor, stated in a LinkedIn post that the new programme will provide corporate personnel with a number of advantages, such as lower Swiggy One membership costs and order discounts.
Kapoor went on to say that Swiggy’s new Corporate Rewards programme truly excites him. A wealth of advantages can be accessed with just a basic email verification. Customers can receive at least INR 125 off simply by using their work email, or they can have a Swiggy One subscription that offers unlimited free deliveries for a full quarter.
Corporate personnel will receive “a minimum of INR 125 off on food orders”, “flat INR 1,000 on top of pre-book offers”, and Swiggy One membership at “INR 30” (with “free” delivery for 3+1 months).
Zomato has discreetly declared that its Gold subscription users will now be required to pay a “rain fee”. The restaurant aggregator has changed its subscription plan so that even its premium customers will now be charged more for deliveries conducted in adverse conditions.
The majority of rapid commerce and foodtech platforms charge extra for deliveries. For its Gold customers, Zomato eliminated the INR 10-35 rain fee that it previously charged.
As of May 16, this perk will no longer be available. Additionally, each order on the meal delivery platform incurs a platform fee of INR 10. Zomato stated in an app notice that the fees will enable it to better reimburse its delivery partners in the event of rain.
Zomato Witnessing Steep Decline in its Business
Zomato’s parent company, Eternal, announced a sharp 78% year-over-year (YoY) decline in net profit for the March quarter, coming in at INR 39 crore, as the firm’s bottom line continued to be negatively impacted by losses from its rapid commerce division, Blinkit.
The expansion of Blinkit, which is now tied with food delivery in terms of gross order value (GOV), was the main driver of the Gurugram-based company’s operating revenue, which increased 64% year over year to INR 5,833 crore.
The expansion of Blinkit was accompanied by a 75% sequential increase in operational losses to INR 178 crore. The company’s established business of food delivery kept expanding gradually.
Strong discretionary spending and the growing impact of fast commerce on operations and demand were cited by CEO Deepinder Goyal as the reasons for the slow pace. According to Goyal, market share, however, stayed steady with the expectation of future increases.
Zomato Delisted 19000 Restaurants
According to Goyal, Zomato delisted almost 19,000 businesses in the March quarter, which had an effect on the volume of food delivery orders. Because they violated hygienic regulations, imitated well-known brands, or ran several identical menu listings to increase listing impressions, these restaurants were removed from Zomato.
The firm also shut down its homely meal service, Everyday, and its 15-minute food delivery service, Quick, as a sign of its growing reliance on food delivery for overall earnings.
The company does not see a clear “path to profitability” for these services “without compromising customer experience”, according to CEO Deepinder Goyal’s letter to shareholders.
After Zomato and Swiggy eliminated the rain surcharge waiver from their membership programmes, their stocks increased by 3.3% on 15 May. In Friday’s trading, Swiggy’s shares increased 3.3% to INR 326.8, while Zomato’s shares increased 2% to reach a day’s high of INR 247.2 on the BSE.
The action is consistent with the businesses’ larger attempts to increase profitability, especially in light of the growing losses in its rapid commerce verticals.
A post on Reddit from an anonymous source who claims to be an employee of Zomato, has stirred up quite a bit of controversy. It alleges that Zomato is in crisis and that the popular food delivery platform is steadily losing ground to competitors like Zepto Cafe and Swiggy. The post also mentions an internal edict that supposedly requires Zomato employees to place at least seven orders a month from Zomato and that there are apparently systems in place to monitor and enforce this directive. The post added that Zomato employees are discouraged from ordering from rival platforms, especially if they happen to be within the Zomato office. Alongside all this, the post paints a picture of a toxic work culture at Zomato, one in which leadership seems to come and go suddenly and one in which both employees and partners (restaurants) seem to be rather dissatisfied.
CEO Deepinder Goyal Dismisses Allegations
Zomato’s CEO Deepinder Goyal very promptly pushed back against the viral post, calling it complete nonsense. On the social media platform X, Goyal countered that Zomato does not require its employees to order food from the company and certainly allows them the freedom to make such decisions, or not, as they please.
“All of this is utter nonsense,” Goyal said on X. “Neither are we losing market share, nor will we ever force our employees to order on Zomato. Freedom of choice is something we stand for vehemently.”
Signs of Pressure Amidst Slowing Growth
Although Zomato’s leadership denies that an internal crisis exists, the company is confronting external difficulties. Its most recent financial results showed lackluster growth in the December quarter, which is usually a peak season for the industry. Zomato’s Gross Order Value (GOV) increased only 2% sequentially to INR 9,913 crore, even as the year-on-year rise stood at 17%. Despite this, Zomato’s main rival, Swiggy, appears to be increasing its market share slightly and now has 43%. All of this suggests that Zomato’s growth troubles are real but perhaps not as dire as the whistleblower alleges.
Contentious as they may be, Goyal’s assurances firmly establish Zomato’s objective of keeping operational stability and trust with its various stakeholders. The company appears to be keeping a strong focus on maintaining even its operational objectives, appearing clear to avoid cutting deep into the employee base. Zomato will need to keep holding all those necessary stakeholder relationships for them to be able to pivot into the even more important growth and profitability phase that they have been missing since they listed.
As part of an ongoing antitrust probe against the foodtech giant, the Delhi High Court (HC) has sent notice to Zomato and the Competition Commission of India (CCI).
According to reports, the HC made the rulings at a hearing on a plea against the National Restaurant Association of India’s (NRAI) exclusion from the confidential ring during the investigation. The HC was also urged by the NRAI to examine the company’s confidentiality claims.
What is Confidential Ring?
The confidential ring was first introduced in 2022 and gives parties access to private documents or information about other parties in an inquiry so they can better defend themselves. The confidentiality ring aids regulators in quickly resolving complaints, subject to specific riders. Exclusion from the ring inhibits a petitioner’s capacity to make a defence.
It is important to remember that in October 2024, the competition watchdog removed the NRAI from the ring after it had been first included. At the hearing on 21 April, Zomato’s lawyer allegedly argued that the NRAI should not be included in the confidential ring because it included companies that are competitors of the foodtech juggernaut.
Issue to be Further Heard on 23 April
The NRAI’s claim against Zomato was combined with a similar suit against Swiggy by the High Court bench, which was presided over by Justice Sachin Datta.
In November of last year, the HC also sent out a notice on the Swiggy case. At its upcoming hearing on April 23, the HC will now consider both cases together. This news broke on the same day that the CCI upheld Zomato’s platform fees and delivery costs, ruling that they do not constitute an abuse of control.
The most recent development occurs five months after a report stated both Zomato and rival Swiggy were found guilty internally by the competition commission. According to CCI, both businesses have limited market competition by favouring particular restaurant partners, in violation of competition regulations.
CCI Putting a Strict Scanner of Zomato and Swiggy
After NRAI filed a complaint in 2021, the CCI conducted an examination involving the two companies for over two years before issuing its antitrust decision. In its lawsuit, the industry association had said that the foodtech platforms participated in anticompetitive practices such as deep-discounting methods, bundling of services, exorbitant fees, delayed payment cycles and imposition of one-sided terms.
As part of the confidential ring, the watchdog had already granted the NRAI restricted access to the antitrust report in April 2024. In the Karnataka High Court (HC), Zomato and Swiggy later contested the CCI’s order, claiming that the disclosures may cause the two businesses “irreparable commercial harm” even in the presence of confidentiality protections.
The Karnataka High Court then ordered the watchdog to re-examine its ruling in June 2024, which cleared the path for the October 2024 verdict that barred the NRAI from the confidentiality ring. The restaurant body moved the Delhi HC as a result of this development.
