Zomato, a platform for foodtech and rapid commerce, is going to buy out Paytm’s movie and ticketing division. The deal has been in the works between the two businesses for three months now. Following Blinkit in June 2022, this is the first significant acquisition for the Gurugram-based startup.
An announcement was made to the Bombay Stock Exchange (BSE) stating that Zomato has agreed to purchase Paytm’s entertainment ticketing business for INR 2,048 crore (about $244 million) in cash.
Details of the Deal
Zomato will receive full ownership of Orbgen Technologies (TicketNew) and Wasteland Entertainment (Insider), two subsidiaries of Paytm’s parent company One97 Communications, according to the terms of the agreement.
Along with the two subsidiaries, 280 current employees from TicketNew and Insider will also be a part of the agreement. Paytm, which is headed by Vijay Shekhar Sharma, purchased Insider in May 2017 and TicketNew in 2018 for a total of $40 million.
In FY24, the company reportedly made INR 297 crore in sales and INR 29 crore in adjusted EBITDA.
During the transition time of up to 12 months, the entertainment ticketing business—which includes movie, sports, and live event ticketing—will continue to function on the Paytm app. Assuming all agreements are met, the transaction is anticipated to finalise this quarter.
Why Zomato So Keen About This Acquisition?
As per market experts, the last quarterly results showed a fall in gross order value, which is bad news for stock market investors because it indicates that the Zomato’s primary food sector is slowing down, even though the reduction was small. Although some may see the decline as a temporary setback, others worry that the meal delivery sector is reaching its peak as it expands into more and more locations.
Therefore, many analysts and broking companies expect Blinkit, Zomato’s quick-commerce branch, to surpass Zomato’s primary meal delivery operation, and industry observers’ attention has recently shifted to Blinkit.
They should be able to satisfy investors’ appetite for growth with Zomato’s main food company making profits and Blinkit offering growth, right? Yeah, but that’s only for today.
It is unclear if Blinkit will be able to sustain Zomato’s growth in the future, even though it is currently driving it. This is because it is unclear if quick-commerce will gain traction in tier-2 and tier-3 cities after they have penetrating metro cities to their full potential.
So, for Zomato to continue its growth trajectory in the future, it needs a fourth engine, in addition to its online food ordering, Hyperpure by Zomato, and Blinkit industries. One possible candidate for the fourth engine is Zomato’s “Going-out” vertical, which includes eating and live events. This makes this deal a perfect combination for Zomato, considering its future growth.
A renowned media house has reported that food tech company Swiggy, which is preparing for an initial public offering (IPO), has expanded its service fee policy to incorporate the gross order value (GST plus packaging fees) for restaurants located outside of metro areas. As a result of the change, its restaurant partners in those areas will earn a higher commission.
In the past, restaurants in bigger cities were already charged a service fee (also called a commission) based on the gross value of their operations, whereas smaller towns and cities had to figure it out using the net value.
How This Move Will Be Implemented?
The service fee will be applied to the gross value of each order by Swiggy starting August 14, in accordance with the merchant conditions. The business informed its restaurant partners in a letter that the service price owed to Swiggy will slightly rise due to this adjustment being implemented evenly across the platform.
The study states that around 1,000 eateries will be impacted by this regulation shift. “Contracts are usually tailored individually, but this latest update will be implemented for around 1,000 partners at this stage,” another media house reported in its recently published article.
It is usual protocol, according to a Swiggy representative, to communicate with a select set of partners after negotiations; this is because each partner has a customised business agreement that is tailored to their specific needs.
In contrast to Swiggy, which normally charges restaurants a commission of 17–25%, Zomato, an industry rival, charges payment gateway costs independently.
Disputes Arise Around Commission Uniformity
Swiggy has around 350,000 restaurants listed on its network. The move is to standardise prices on gross value orders across all of them. Nevertheless, numerous restaurant partners will be impacted, thus the adjustment has ignited a discussion.
Sustainable techniques that are good for delivery services and restaurants alike should be seriously considered. Gaining market share through raising discounts or commissions alone might not be sustainable.
Brand value, order numbers, and other indicators are usually considered during individual contract negotiations between meal delivery platforms and restaurant partners.
There is constant debate over the commission that meal delivery companies like Zomato and Swiggy charge because of the substantial effect it has on restaurants’ bottom lines.
Easing the Payment Services
The newly integrated Unified Payments Interface (UPI) Plug-in service was introduced by Swiggy on Wednesday. This service is powered by the National Payments Corporation of India (NPCI) and Juspay.
This functionality, which is marketed as Swiggy UPI, enables clients to make payments more quickly from within the app, thereby lowering the amount of time it takes to complete a transaction from more than 15 seconds to only five seconds.
By launching a new app called District, the food aggregator Zomato is expanding its operations beyond its main business of providing food delivery and quick shopping. The “going-out” business, which includes dining, movies, sports ticketing, live performances, shopping, vacations, and other activities, will be consolidated by introducing this new vertical space.
Deepinder Goyal, the company’s Chief Executive Officer, made the announcement in a letter to the shareholders. In the letter, he stated, “We believe that there is an opportunity to further expand our going-out offering, building on with our dining-out business.”
Other use cases for customers in the going out area include things like going to the cinema, purchasing tickets to live performances, shopping, staying at home, and other similar activities. Some of these use cases have already been established, and others are currently being developed.
In addition, Goyal stated, “We intend to do exactly that with our new District (by Zomato) app, which is to build a one-stop destination app for going out.”
This might be a game-changer for each of these use cases. Going out has the potential to become Zomato’s third-largest business-to-consumer (B2C) business if we are successful in executing this plan.
Zomato’s Recent Financial Report Card
The major food technology company declared a net profit of INR 253 crore, which is significantly more than the net profit that it had posted during the same quarter of the previous year. Over the June quarter, Zomato’s revenue reached INR 4,206 crore, which is a year-on-year rise of approximately 74% compared to the previous year’s figure of INR 1,416 crore.
During the quarter, Zomato’s Gross Order Value (GOV) reached INR 15,455 crore, representing a 53% rise. Specifically, the organization defines GOV as the aggregated GOV of consumer-facing enterprises like meal delivery, quick-commerce, and going out.
It is essential to keep in mind that Zomato has not developed a great app in the same way that its competitors Swiggy and BigBasket have. The Going-out business vertical of Zomato is a combination of the Zomato Live and Dining-out business verticals.
As a result of this decision, Zomato is now in competition with apps such as BookMyShow. In June, Zomato confirmed the exchanges that it is, in fact, in negotiations with Paytm to purchase the latter’s media and ticketing operations.
Only two states, West Bengal and Odisha, allow alcohol home delivery, but media sources say six states may launch a pilot project after assessing it.
According to reports, Swiggy, BigBasket, Blinkit, and Zomato may soon deliver beer, wine, and liqueurs. Industry executives informed the media that New Delhi, Karnataka, Haryana, Punjab, Tamil Nadu, Kerela, and Goa are considering experimental projects. The media reported that executives indicated authorities are weighing the move’s merits and downsides.
Maharashtra, Jharkhand, Chhattisgarh, and Assam allowed liquor delivery during Covid-19 lockdowns with limits. Retail executives in West Bengal and Odisha reported a 20-30% sales rise from online delivery.
Expansion’s Driver: Consumer Interest and State Evaluations in Alcohol Home Delivery
With the help of the social media network LocalCircles, ISAWI surveyed 33,000 people in eight different cities in May 2021 about spirits delivery. Customers in Hyderabad, Bengaluru, Delhi, and Chennai expressed an interest in home delivery services, with 81% citing safety, brand availability, and convenience as reasons to back up their response.
In order to weigh the pros and cons of online alcohol delivery, state officials are currently surveying e-commerce platforms and spirits producers.
Industry Support: Upside of Alcohol Home Delivery
Breweries and the industry as a whole have been quite supportive. Beverage and wine producers have indicated a lot of interest in home delivery of their products, according to industry experts. This includes United Breweries’ Kingfisher brand and Budweiser owner AB InBev. Because beer consumption is very consistent with food purchasing patterns, this trend is very attractive, especially to city dwellers.
Industry Challenges: Obstacles of Online Alcohol Delivery
Due to various political backlashes, perception issues, and pressure from physical retail bodies, delivery platforms continue to face obstacles when trying to execute online alcohol delivery plans.
According to HipBar creator Prasanna Natarajan, who spoke to a media house, the company’s services were halted due to “certain local lobby pressures” after they had begun operations in Karnataka in 2021. A complaint had even been launched at the Supreme Court by the company.
He went on to say that the regulations governing business in various areas vary substantially, making it difficult to establish businesses throughout large portions of the country. There’s concern about the potential consequences of underage buyers or instances of domestic violence resulting from careless drinking. Natarajan had informed the media that there is a fear that duties will be avoided and that the government will lose the three rupees in levies it receives for every rupee a manufacturer generates. This is because the government stands to lose this revenue.
There are, without a doubt, challenges to face. Businesses and consumers alike are excited about this pilot initiative that is taking place across multiple states in India. If this initiative is fruitful, it may serve as a model for similar endeavours in other sectors.
Zomato and Swiggy, two of the largest food delivery companies in the world, shocked consumers in important cities like Bengaluru and Delhi by increasing their platform costs by 20%, to Rs 6. Both sites gradually raised their order fees from Rs 2 to Rs 6 over several months.
Delivery companies rely on platform fees to boost their take rates, which dictate how much money they make from each order. Zomato and Swiggy have been exploring the possibility of using platform fees to increase their total revenues and profits because they have formed a pair of monopolies. Compared to the Rs 3 that many users were paying at the time, Swiggy’s January platform charge of Rs 10 was significantly higher. During checkout, users were shown the higher fee of Rs 10, however, they were only charged Rs 5 after a discount. This was just to tease them.
In several important cities, such as the National Capital Region, Bengaluru, Mumbai, Hyderabad, and Lucknow, Zomato raised its platform cost from Rs 4 to Rs 5 for each order in April.
These companies are attempting to boost their business revenue in several ways. One is by charging greater platform fees; another is by increasing their ad revenue. Platforms, especially those involved in food delivery, are struggling to raise the commissions they charge restaurants without displeasing them, thus this becomes important.
Moving Away From Earlier Statement
The increase contradicts Swiggy‘s previous claims that it had no intentions to significantly raise the platform price. Analysts believe that both businesses will keep raising rates until they see customer pushback and a decline in order volumes.
At this time, the platform charge is only applicable to Swiggy’s and Zomato’s food delivery services; neither company has expanded it to cover their quick commerce businesses, Instamart and Blinkit. But in March 2023, a rival in the fast delivery industry named Zepto introduced a platform fee. With a daily order volume of approximately 5.5 lakhs, Zepto’s Rs 2 platform fee brings in an extra Rs 11 lakh in revenue. Zepto doesn’t have a meal delivery service like Zomato or Swiggy; it focuses solely on fast commerce.
Cut Back Expenses
There may be a way to cut down on operational expenses associated with delivery services by using the platform charge. Expenses like these pay for things like delivery workers, app infrastructure, and fast customer service. Without significantly diminishing the quality of their primary offerings, Zomato and Swiggy may be attempting to strike a compromise between these operational costs by raising the platform fee.
It May Lead to a Change in Market Dynamics
As customers seek out more cheap solutions, newer or smaller platforms may see an increase in subscribers, leading to more competition in the meal delivery sector. As a result of the charge increase, eateries may have to adjust their prices to absorb the added costs without driving away consumers. To attract budget-conscious consumers, they may either raise menu prices gradually or provide more deals and discounts. The overall cost and service arrangement of the food delivery industry can be affected by these changes in the long run.
At the beginning of the new year, the two most prominent participants in the food delivery industry raised the platform fees by INR 1, which is equivalent to a 33 percent increase from INR 3 to INR 4. According to the predictions made by the media, the prices of consumer services would increase. This prediction was pretty much spot on thanks to Zomato and Swiggy, and it started on New Year’s Eve, which is the busiest day of the year for both of these companies.
Platform fees are not restricted to food delivery apps; Myntra, the top fashion eCommerce platform in India, is presently charging a platform fee of ₹20 for each order that is placed on its app. These fees are a component of the methods that the corporations employ to enhance their profitability and maintain their business models. The implementation of such fees, on the other hand, might vary, and some businesses may experiment with greater prices in the future or alter them based on the demand for specific services.
The most dedicated Zomato and Swiggy customers had to make some choices at the start of the new year. Should they decide to reduce their reliance on these platforms or keep paying ever-increasing platform fees to stay on top of them?
Starting on January 1, Zomato raised the platform fee from INR 3 to INR 4 per order in select areas. Unverified rumors circulated that on New Year’s Eve, Zomato briefly increased their platform fees to as much as INR 9 per order in several countries.
The price increases were justified by Zomato as “business calls” made after considering several variables. Coincidentally, Zomato’s order volume shot up to higher than the volume over the last six years combined, and the platform fees surged the day after New Year’s Eve.
The innovative approach and unwavering commitment to satisfying customers’ demands have contributed to Zepto’s steady rise to prominence, positioning it as the third-largest rival in the fast commerce space. Zepto is challenging industry heavyweights such as Swiggy Instamart and Blinkit, which is owned by Zomato, with a reputation for itself and a market share of over 20%. During its rise to prominence, Zepto has been known for its thoughtful approach to implementing platform fees, as well as its focus on user experience and operational performance.
In an attempt to boost income and operational efficiency, Zepto has decided to implement platform fees for a small number of users, which is different from the fee-free grocery order strategy of competitors Blinkit and Swiggy Instamart. Zepto’s plan, which starts at Rs 2 per order, follows the same model as established industries like eCommerce and restaurant delivery. Zepto emphasizes in its strategy introduction its commitment to sustainable growth and profitability over the long term and its willingness to try new things to stay ahead of the competition.
Size of the Online Food Delivery Market Across India From 2020 to 2023, With Estimates Until 2026
Aiming for Financial Gain
In addition to Zomato and Swiggy, other popular food delivery services like Uber, BigBasket, Myntra, and Dunzo impose extra charges (convenience charges, handling fees, and more) on top of the real delivery prices, which are typically discounted. Ola Prime Plus and Namma Yatri’s subscription plans for driver-partners are examples of new models that have emerged as a result of the revenue drive.
The fashion eCommerce behemoth Myntra, which is owned by Flipkart, started charging a fee for returns, which is one of its main selling points. The goal here is to correct unit economics.
According to Prosus, Swiggy’s principal investor, the company’s loss increased to $545 million in 2022 from $300 million the previous year, while Swiggy has not yet disclosed its financial results for FY23.
Platform fees are opening the way for the company to show a clear path to profitability in the next few months, which is necessary for its 2024 IPO. Platforms like Swiggy and Zomato will compensate to some degree by charging customers directly, even if discounts will still be around.
How much these fees are, how open they are, and how much value they give to everyone involved in the delivery process will determine if they are ethical.
The openness of these fees is also very important. Any fees and their purpose should be made plain to both customers and eateries. In an ethical system, food delivery fees would be reasonable, helping to sustain the industry while not unfairly harming any one participant.
India’s leading digital commerce entity Flipkart is working to venture into the fast-paced world of quick commerce to meet the burgeoning demand for rapid delivery of everyday essentials.
Flipkart has recently unveiled its latest initiative of same-day delivery service now available in 20 major Indian cities.
This strategic move underscores Flipkart’s unwavering dedication to elevating customer satisfaction, and convenience and to revolutionize the eCommerce landscape.
“We are committed to meeting evolving customer expectations and delivering excellence in value, selection, and speed, with more initiatives expected on this front in the coming months,” Walmart-backed Flipkart said in a statement.
This new initiative of same-day delivery will be for customers across cities including Ahmedabad, Bangalore, Bhubaneshwar, Coimbatore, Chennai, Delhi, Guwahati, Hyderabad, Indore, Jaipur, Kolkata, Ludhiana, Lucknow, Mumbai, Nagpur, Pune, Patna, Raipur, Siliguri and Vijayawada.
It would cover products like mobiles, essential items, electronics, home appliances, fashion, books, and lifestyle goods. The customers will get their products delivered before midnight if they place their orders by 1 pm without any extra charge.
Flipkart’s introduction of same-day delivery service represents a significant advancement in the Indian eCommerce market.
“We have invested in cutting-edge technologies, leveraged data analytics, and harnessed insights on demand patterns to ensure that we are well-equipped to anticipate and fulfill demand the very same day. I must acknowledge the hard work and dedication of our teams who have tirelessly contributed to making this vision a reality,” said Hemant Badri, Senior Vice President, Head of Supply Chain, Customer Experience & ReCommerce Business, Flipkart Group.
In the past year, quick commerce has surged into a billion-dollar industry with platforms like Blinkit, Zepto, and Swiggy Instamart poised to exceed USD 1 billion in revenue in the financial year 2023-24.
The surge in quick commerce has captured Flipkart’s interest, prompting the eCommerce giant to enhance its emphasis on the grocery sector.
As quick commerce constitutes approximately 40% of online grocery delivery, it is increasingly fueling growth. Flipkart’s renewed focus on grocery aligns with a broader transition away from conventional eCommerce models centered on sales and discounts.
As of now, these apps are providing quick commerce to consumers in major Indian cities:
Blinkit
Swiggy Instamart
Zepto
Started operations in
January 2022
August 2020
April 2021
Revenue as of FY 2023 (in Rs crore)
724
3221
2024
Revenue as of FY 2022 (in Rs crore)
236
2036
142
Funds raised for quick commerce (in U.S.$ million) US$ 1 mn = Rs 8.2 cr
569
700
361
Current market share (in %)
40%
37-39%
20%
It’s essential to acknowledge how its rivals have also expanded into quick commerce to meet evolving customer demands.
Here’s how some of Flipkart’s competitors have ventured into quick commerce:
Amazon India
Amazon has been a key player in the Indian eCommerce sector, and it has also delved into quick commerce to enhance its delivery capabilities. The company offers Amazon Prime Now, which provides ultra-fast delivery of essentials, groceries, electronics, and more within a few hours.
Reliance Retail
Reliance Retail, through its digital arm JioMart, has been rapidly expanding its presence in the e-commerce space. Leveraging Reliance’s extensive network of physical stores and warehouses, JioMart offers quick delivery of groceries, household essentials, and other daily items.
BigBasket
As a leading online grocery platform in India, BigBasket has capitalized on the growing demand for quick delivery of essential items. The company offers express delivery services for groceries and household essentials, ensuring that customers receive their orders within a few hours. BigBasket has the quick commerce feature BB Now too to get groceries delivered in 15-30 minutes.
Blinkit
Grofers now Blinkit has rebranded itself to reflect its commitment to rapid delivery. With its extensive network of local partners and warehouses, Blinkit ensures that customers receive orders within a few minutes, making grocery shopping seamless.
Blinkit has begun selling home appliances, puja essentials, Eid special offerings like prayer mats, thobe kurte, ‘sehri’ and ‘iftar’ needs, ‘Holi’ needs, sweets, colors, thandai, bakery items, meats, seafood, cosmetics, mobiles and accessories, electronics, baby care products and much more.
Swiggy and Zomato
While primarily known for their food delivery services, Swiggy and Zomato have also entered the quick commerce space by offering delivery of groceries, medicines, and other essential items.
Zepto
Zepto is also the name of a quick commerce platform that enables businesses to offer fast delivery services for groceries, bakery products, kitchen essentials, paan corner (betel leaf), tobacco, health and hygiene, toiletries, clothing, and other essentials. Zepto provides tools and infrastructure to facilitate within minutes delivery of goods to customers’ doorsteps.
Dunzo
Dunzo has become synonymous with hyperlocal delivery, with its Daily service taking it a step further by guaranteeing delivery within 19 minutes. From groceries to medicines to food from nearby localities to letters to clothes from the nearest boutique, Dunzo Daily fulfills all your daily needs with lightning speed.
While Flipkart maintains a strong foothold in the market, achieving revenue growth poses a continual challenge. With the emergence of competitors such as Zepto and Blinkit, there is a critical need for Flipkart to establish itself within the quick commerce sector.
As per media reports, Flipkart is also weighing options to expand into quick commerce with the introduction of dark stores. Dark stores are like mini warehouses designed for online orders.
Flipkart is also planning to buy Dunzo Daily. Despite having raised approximately USD 500 million in funding, Dunzo has struggled to secure additional investment and meet its staff payroll.
The hyperlocal delivery company has lost ground to newer competitors like Zepto, Swiggy, and Zomato’s Blinkit, leading to a drop in its market position.
Flipkart, valued at over USD 32 billion, is considering buying Dunzo, known for its local delivery skills. This move could be smart, but talks might take a while because Dunzo has ties to Reliance Retail, its main investor owning a 26% share.
Flipkart wants to be careful about what it buys, especially considering Dunzo’s connections, according to an article published by Business Insights Now on February 23.
The prospects of quick commerce, including Flipkart’s role, are exceptionally promising, driven by evolving consumer preferences, technological advancements, and market dynamics.
Flipkart, along with other quick commerce platforms, will capitalize on increasing smartphone penetration, internet connectivity, and digital payment systems to broaden its reach across diverse demographics and geographic regions.
By 2028, it is anticipated that the number of users in the quick commerce market in India will reach 56.4 million users. The user penetration rate, which currently stands at 1.8% in 2024, is projected to rise to 3.8% by 2028.
Meanwhile, the quick commerce market in India is anticipated to reach a revenue of USD 3.3 billion in 2024, with a projected compound annual growth rate (CAGR 2024-2028) of 27.42%. This growth trajectory is expected to propel the market volume to USD 8.8 billion by 2028.
Revenue of Quick Commerce Market in India
Conclusion
In summary, Flipkart’s expansion of its same-day delivery service epitomizes its dedication to setting new benchmarks of excellence in the eCommerce arena.
With a focus on speed, convenience, and customer satisfaction, Flipkart reaffirms its position as a trailblazer in India’s digital commerce revolution.
As the quick commerce market continues to evolve and expand, Flipkart’s strategic initiatives and dedication to customer satisfaction will shape its trajectory in the years to come.
The future holds endless possibilities, and Flipkart stands ready to embrace the opportunities that lie ahead, driving forward the evolution of online retail.
“Many believe Amazon and Walmart-owned Flipkart will continue to dominate the future of Indian eCommerce. In my humble opinion, I would not bet against the hometown teams at Zepto and Zomato,” said a LinkedIn post by Paul Hudson, Founder and CIO, of Glade Brook Capital.
Glade Brook Capital, which supported Zepto in Mumbai last year, also invested in Zomato’s parent company, Blinkit, back in 2019.
FAQs
In how many cities will Flipkart provide the same-day delivery service?
Flipkart will provide same-day delivery service in 20 major Indian cities including Ahmedabad, Bangalore, Bhubaneshwar, Coimbatore, Chennai, Delhi, Guwahati, Hyderabad, Indore, Jaipur, Kolkata, Ludhiana, Lucknow, Mumbai, Nagpur, Pune, Patna, Raipur, Siliguri and Vijayawada.
What will be the revenue of the quick commerce market in India in 2024?
The quick commerce market in India is anticipated to reach a revenue of USD 3.3 billion in 2024, with a projected compound annual growth rate (CAGR 2024-2028) of 27.42%. This growth trajectory is expected to propel the market volume to USD 8.8 billion by 2028.
Who are the competitors of Flipkart in the field of quick commerce?
The competitors of Flipkart in quick commerce include Dunzo, Amazon India, Reliance Retail, BigBasket, Blinkit, Zepto, Zomato, and Swiggy.
In the constantly shifting business landscape, a handful of figures stand out as much as Deepinder Goyal, the brilliant mind behind Zomato. Goyal’s experience as an entrepreneur and investor has been nothing short of inspirational. After successfully navigating the obstacles of creating and developing Zomato, he has smoothly shifted into a role beyond his own companies. His passion for encouraging innovation and helping emerging entrepreneurs has shown itself through an excellent portfolio of startup investments.
Deepinder Goyal is the co-founder and CEO of Zomato, India’s most prominent restaurant aggregator and food delivery service. Zomato operates in more than ten thousand cities in India and twenty-four other countries worldwide.
Deepinder Goyal was born on January 26, 1983, in Muktsar, Punjab, India. He graduated from the Indian Institute of Technology, Delhi, with a degree in Mathematics and Computing in 2005. In addition to his academic background, Deepinder Goyal is well-known for his tremendous professional achievements, both in the field of gastroenterology and in the business field.
While working at Bain & Company, Deepinder Goyal noticed that customers were waiting in long lines to order meals, which gave him the idea to launch Zomato. When he and his colleague Pankaj Chaddah saw that this issue needed to be solved, they began the business in 2008 under the name Foodiebay. The company first offered restaurant listings and recommendations on its platform, which eventually grew to include food delivery and restaurant discovery services.
Deepinder Goyal has made investments in a number of businesses. His investment portfolio is diverse, spanning consumer and enterprise applications, health technology, and more. It includes companies such as:
Airblack
Startup Name
Airblack
Industry
Skill development
Founded
2019
Airblack – Deepinder Goyal Funded Startup
Airblack is India’s largest outcome-driven skill development brand. It was established in 2019 by Pulkit Pujara and Jaiswal. Airblack aims to assist micro-entrepreneurs and creators by providing access to courses from verified beauty and culinary arts specialists. The company has over twenty-five thousand students from over five hundred cities enrolled in these courses. Most of them are women who have gone on to work as independent contractors, web content writers, or owners of home salons. Deepinder Goyal is the largest investor of Airblack, which has raised 6.7 million US dollars in investments.
Allo Health
Startup Name
Allo Health
Industry
Healthcare
Founded
2021
Allo Health – Deepinder Goyal Funded Startup
Allo Health is India’s first clinic exclusively devoted to sexual health. It is a digital health clinic that aims to normalize sexual wellness by providing personalized, judgment-free, and private healthcare. Prioritizing the patient’s needs is their primary objective. Allo Health’s experts will guide you through each stage of the process that has been developed with science-based solutions in mind. They provide you with unlimited consultations until you see results and are satisfied with them. Allo Health raised 4.4 million dollars in its seed round of raising funds on January 13, 2022, with Deepinder Goyal as one of the top angel investors.
Animall
Startup Name
Animall
Industry
Livestock Trading
Founded
2019
Animall – Deepinder Goyal Funded Startup
Deepinder Goyal invested in Animall, a livestock trading company started by Kirti Jangra, Anurag Bisoi, Neetu Yadav, and Libin V Babu. Animall was first created in June 2019 as part of an internal hackathon at Pratilipi (a storytelling platform), where it won both the jury and audience awards. It is a top-tier Venture Capital-backed firm developing an internet platform to benefit millions of dairy producers. Animall has made it easier for dairy farmers to begin their farms by providing quick and simple access to high-quality cattle through an “easy-to-use” mobile application.
WEH Ventures, Omnivore, Beenext, Rocketship, and individual investors such as Deepinder Goyal, Sahil Barua, Vidit Attrey, Sanjeev Kumar, and Mohit Kumar also participated in the fundraising, which spanned across five rounds and valued at 24.7 million dollars.
Bira91
Startup Name
Bira91
Industry
Beverage
Founded
2015
Bira91 – Deepinder Goyal Funded Startup
Bira91 paved the way for the emergence of Craft Beer into the Indian beverage scene. Founded by Ankur Jain in 2015, Bira 91 is supported by Sequoia Capital India and is run by a vibrant staff of over six hundred enthusiastic beer connoisseurs. With five breweries dotted over India, it has produced an extensive selection of multiple-award-winning beers. Over the course of 18 rounds, Bira 91 has raised a total of 340 million dollars in investment from two-hundred-six investors, including Sofina, Kalyan Krishnamurthy, Rohit Bansal, Deepinder Goyal, and Anicut Capital.
Bluestone
Startup Name
Bluestone
Industry
Jewellery
Founded
2011
Bluestone – Deepinder Goyal Funded Startup
BlueStone, founded in 2011, is India’s largest destination for high-quality fine jewelry, offering over 800 breathtakingly stunning styles for customers to choose from. It was founded by Gaurav Kushwaha, Sudeep Nagar, and Vidya Nataraj. Bluestone guarantees complete transparency for all their products and has earned a trustworthy certification. Bluestone has been funded by fourteen investors and has raised $100.1 million. Notable invested individuals included Nikhil Kamath, Sunil Kant Munjal, Amit Jain, Deepinder Goyal, and others.
ChefKart
Startup Name
ChefKart
Industry
At-home cooking service platform
Founded
2020
ChefKart – Deepinder Goyal Funded Startup
ChefKart is a platform that allows users to hire verified and trained chefs for their everyday requirements. With a ChefKart subscription, you can access skilled and verified home chefs in your area, hire and replace house chefs easily, and enjoy hygienic, delicious, and healthy meals prepared in your kitchen. Their objective is to ensure every one of the homes in the country has access to high-quality food. With more than four thousand five hundred skilled chefs, they have catered to over 10,000 homes. Chefkart offers a range of services for different use cases, including on-demand and subscription options.
Chefkart raised $2 million in funding from noteworthy investors, including Pravega Ventures, Blume Ventures, Deepinder Goyal, Titan Capital, Kunal Shah, and others.
Gabit
Startup Name
Gabit
Industry
Health & Wellness
Founded
2023
ChefKart – Deepinder Goyal Funded Startup
Gabit is a healthcare firm launched by Gaurav Gupta, a former executive and co-founder of Zomato, that provides solutions for all health and wellbeing needs. It offers clear but comprehensive, goal-oriented answers to important health-related issues like acne, healthy aging, weight control, etc. Gabit secured 9.5 million dollars in seed funding from angel investors such as Kunal Shah, Amit Agarwal, and Deepinder Goyal.
Geniemode
Startup Name
Geniemode
Industry
Supply Chain Platform
Founded
2021
Geniemode – Deepinder Goyal Funded Startup
Geniemode is a one-stop sourcing and supply chain solution provider with an innovative technology-based platform for retailers and suppliers of fashion and home living products. Amit Sharma and Tanuj Gangwani launched the company in March 2021. Through the use of Geniemode’s platform, anyone can create and find catalogs, connect with suitable suppliers, and guarantee a seamless, start-to-finish procedure. Across three rounds of funding, Geniemode raised a total of 36.8 million dollars.
Mainstreet
Startup Name
Mainstreet
Industry
Marketplace
Founded
2019
Mainstreet – Deepinder Goyal Funded Startup
Vedant Lamba launched Mainstreet Marketplace out of a YouTube channel in 2017. Then, he leveraged it to develop into one of India’s biggest marketplaces for streetwear clothing and shoe dealers. It offers brands like Yeezy, Jordan, Adidas, Supreme and more. The organization grew its business by focusing on two key areas: awareness and accessibility. Mainstreet acquired funding from renowned investors, such as Karandeep Anand, Deepinder Goyal, and Anuppam Mittal, as well as entrepreneurs and celebrity names, like Zakir Khan and Kanan Gill.
Multiplier
Startup Name
Multiplier
Industry
Employment Platform
Founded
2020
Multiplier – Deepinder Goyal Funded Startup
Multiplier is a premier global employment platform that handles international teams’ employment, payroll, and compliance. Sagar Khatri, Amritpal Singh, and Vamsi Krishna established the company in 2020. Since then, it has rapidly established itself as the top global job marketplace, making it simple for businesses to hire teams internationally. With a presence in 150 countries, Multiplier enables its clients to tap into global talent pools, allowing them to focus on growing their businesses. Multiplier has raised 77.2 million dollars in funding from investors such as Surge, Picus Capital, Deepinder Goyal, Amrish Rau, and others.
Park+
Startup Name
Park+
Industry
Parking Industry
Founded
2019
Park+ – Deepinder Goyal Funded Startup
Amit, well-versed in the challenges faced by country commuters, came up with the concept for Park+ after finding it difficult to obtain a parking space in time to get to work. It not only helps drivers find parking, but it also lets you rent out any empty spots you may have. Park+ offers services for both two-wheelers and four-wheelers. It was established in 2019 by Amit Lakhotia and Hitesh Gupta. Over the course of six investment rounds, Park+ has raised a total of 54.3 million dollars. The investor portfolio includes Kunal Khattar, Rohit Bansal, Deep Kalra, Deepinder Goyal, and Venture Catalysts.
Pristyn Care
Startup Name
Pristyn Care
Industry
Healthcare
Founded
2018
Pristyn Care – Deepinder Goyal Funded Startup
Pristyn Care, founded in 2018 by Harsimarbir Singh, Dr. Vaibhav Kapoor, and Dr. Garima Sawhney, is a cutting-edge healthcare company streamlining a patient’s complete surgery journey. It ensures that the patient’s experience, from finding the correct doctor to the follow-up appointment following surgery, is stress-free and caring. Pristyn Care uses a unique full-stack care delivery strategy to provide high-quality surgical care to patients at a reasonable cost. Over the course of five funding rounds, Pristyn Care has raised a total of 177 million dollars from Deepinder Goyal, Winter Capital, Hummingbird Ventures, Sequoia Capital, Kunal Shah, and many other investors.
Raise
Startup Name
Raise
Industry
Financial Services
Founded
2021
Raise – Deepinder Goyal Funded Startup
Raise Financial Services is a Mumbai-based fintech business founded in 2021 by Pravin Jadhav Bhimrao. Raise’s initial offering, Dhan, an investment platform for long-term and super traders, launched in November 2021. In September, it made the service’s early access available. Sujeet Kumar, Deepinder Goyal, Amod Malviya, Girish Mathrubootham, Jitendra Gupta, and others invested 22 million dollars in the firm during a funding round.
Shiprocket
Startup Name
Shiprocket
Industry
Logistics
Founded
2017
Shiprocket – Deepinder Goyal Funded Startup
Shiprocket is a technologically advanced logistics platform offering micro, small, and medium-sized enterprises cost-effective options that allow them to sell online and anywhere. They offer packaging, warehousing, and other associated services. Saahil Goel and co-founders Gautam Kapoor, Vishesh Khurana, and Akshay Ghulati set up Shiprocket in 2017. Throughout 12 fundraising rounds, investors, including McKinsey & Company, Lightrock, BEENEXT, Deepinder Goyal, 500 startups, and many more, have invested 399.1 million dollars in Shiprocket.
Terra.do
Startup Name
Terra.do
Industry
Climate Education
Founded
2020
Terra.do – Deepinder Goyal Funded Startup
In 2020, Anshuman Bapna, Mayank Jain, and Dr. Kamal Kapadia built Terra.do, a global career platform for climate change. The institution provides educational programs on climate change and ways to contribute to the solution. Terra.do also helps students find careers in the climate sector. Terra.do has raised a total of 8.4 million dollars for its seed round. Among the many investors in the company are Deepinder Goyal, Stanford Angels and Entrepreneurs, BEENEXT, Rainmatter Capital, Avaana Capital, and a lot more.
The Signal
Startup Name
The Signal
Industry
Business Newsletter
Founded
2020
The Signal – Deepinder Goyal Funded Startup
The Signal is India’s top technology and business newsletter for emerging leaders, offering insightful analysis of economic trends, businesses, and technological breakthroughs. Podcasts about the various fields are also available on the platform. It was founded in 2020 by Dinesh Narayanan and Rajneil Kamath. The Signal has raised 436 thousand dollars from several investors, including LetsVenture, Rainmatter, Capital A, and Deepinder Goyal.
Threado
Startup Name
Threado
Industry
Artificial Intelligence
Founded
2020
Threado – Deepinder Goyal Funded Startup
Pramod Rao and Abhishek Nalin founded Threado in 2020. It is an AI-powered co-pilot designed to help you offer the most excellent support possible to your community and customers across all of your digital platforms. Threado allows users to evaluate engagement, gain deep insights, and automate operational tasks all from one dashboard. Its features let users identify who’s actively participating and who needs to be pushed, and they can employ member activity triggers to put communication processes on autopilot. Threado has secured a total of 3.27 million dollars in two rounds from investors, including Deepinder Goyal, Aneesh Reddy, Tonmoy Shingal, Vertex Ventures, and others.
Ultrahuman
Startup Name
Ultrahuman
Industry
Health & Fitness
Founded
2019
Ultrahuman – Deepinder Goyal Funded Startup
Ultrahuman is a global health and fitness platform that helps users attain their full physical and mental potential. Mohit Kumar and Vatsal Singhal launched it in 2019. Its products include Blood Vision, a preventive blood testing platform with the ground-breaking UltraTrace technology, Ultrahuman M1, a continuous glucose monitoring platform, and the Ultrahuman Ring AIR, the world’s lightest wearable sleep tracking system. Over the course of three investment rounds, Ultrahuman has raised a total of 25.1 million dollars. There are 27 investors in the company, including Deepinder Goyal, Ishan Bansal Dean, Harsh Jain, and Nexus Venture Partners.
Unacademy
Startup Name
Unacademy
Industry
Education
Founded
2015
Unacademy – Deepinder Goyal Funded Startup
Unacademy is an e-learning platform designed to build an online knowledge resource for multilingual education. Gaurav Munjal, Roman Saini, and Hemesh Singh launched the edtech platform in Bengaluru in 2015. It was first launched in 2010 as a YouTube channel before developing into a feature-rich platform for educational technologies. Unacademy has raised a total of 838.5 million dollars from forty-three investors, including Mirae Asset Venture Investment, General Atlantic, Deepinder Goyal, Sandeep Tandon, Sachin Tendulkar, and Ritesh Agarwal.
Conclusion
Deepinder Goyal’s contribution to the startup ecosystem is undeniable. His strategic investments have fostered innovation and growth in several types of businesses across India. His approach to backing businesses extends beyond financial support, where Goyal actively mentors and guides the founders, bringing unique insights and expertise to the table. Moreover, the investing portfolio displays an in-depth understanding of emerging trends and a willingness to take risks on breakthrough concepts. Deepinder Goyal’s impact will undoubtedly have a long-lasting effect on the startup landscape as these companies grow and bring revolutions in their respective industries.
FAQs
Who is Deepinder Goyal?
Deepinder Goyal is the co-founder and CEO of Zomato.
What are the companies Deepinder Goyal has invested in?
Some of the notable companies that Deepinder Goyal has invested in are:
Shiprocket
Unacademy
Bluestone
Raise
Bira91
What is the net worth of Deepinder Goyal?
The current net worth of Deepinder Goyal is Rs. 2,030 Crore.
Top 3 winners will receive prizes worth INR 10 Lakhs, 5 lakhs, and 3 lakhs respectively,
New Delhi, 2nd February 2024: Zomato, India’s food ordering and delivery platform today announced a ‘Plastic-Free Orders Packathon’ in collaboration with Startup India to encourage innovation in sustainable packaging for food delivery orders. The Packathon is a competition for startups to showcase food delivery sustainable packaging options for restaurants catering to online food orders.
Anjalli Ravi Kumar, Chief Sustainability Officer, Zomato said “Zomato is deeply committed to reducing the environmental impact of food deliveries. In September 2023, we began to recognize restaurants that have adopted sustainable packaging materials for food deliveries via a ‘Plastic-Free Orders’ banner. The program is live in 8 cities and 3.6 million orders have been recognized as plastic-free till December 31st, 2023.The program surfaced the fact that many national restaurant chains have adopted paper-based or bagasse-based packaging. Standalone, mid-tier and budget restaurants, especially those outside metro cities, are struggling with the availability of affordable and functional alternatives to plastic packaging for their deliveries. The problem is particularly acute for restaurants specializing in gravy-based cuisines with multiple condiments and accompaniments. We believe focused innovations hold the answer to this problem and the Packathon is a way to surface and recognize Indian innovators.”
Zomato Plastic-Free Orders, Packathon
Aastha Grover, Vice President, Startup India said, “The launch of Zomato Plastic-Free Packathon is a testament to our shared commitment to helping Indian businesses and citizens transition to sustainable practices. Given the burgeoning issue of plastic pollution, this initiative is a clarion call to all Indian startups to innovate and devise sustainable packaging solutions for food delivery that can significantly reduce plastic usage. This challenge presents a unique opportunity for Indian startups to showcase their ingenuity and contribute to a new era of sustainable consumption. As part of Startup India’s mission, we are excited to facilitate and support innovative solutions that will preserve our planet for future generations.”
Open to all DPIIT-recognized start-ups, the deadline for application submission to the Packathon is February 29th. The top three winners will receive prizes worth 10 Lakhs, 5 lakhs, and 3 lakhs respectively, in addition to receiving the opportunity to showcase their solution to Zomato’s restaurant partners.
Zomato also recently announced its comprehensive 2030 sustainability goals, including, continuing to facilitate 100% plastic-neutral food delivery orders through voluntary recycling, and also facilitating the delivery of 100 million plastic-free food orders by 2025. Over the years, Zomato has undertaken various initiatives to reduce the environmental impact of food deliveries, through its 3Rs approach of ‘reduce, recycle and reward’.
In 2021, the company made ‘Do not send cutlery’ the default option on its food ordering and delivery app, giving customers the option to ask for cutlery, only if they needed it. Over the past two years, this simple initiative has cut cutlery waste by 1,000 MT or 1 million kilos. In FY 23, Zomato recycled 20,000 MT of plastic waste – more than 2X the weight of plastic used by restaurant partners to package orders received through Zomato. In 2023, the company launched a recognition program for restaurant partners who make the switch to plastic-free alternatives for their Zomato deliveries.
About Zomato
Launched in 2010, Zomato’s mission is to provide better food for more people. Zomato is a restaurant search & discovery and food ordering and delivery platform.
About Startup India
Startup India is a flagship initiative of the Government of India, intended to catalyze startup culture and build a strong and inclusive ecosystem for innovation and entrepreneurship in India. Launched on 16th January 2016, the Startup India Initiative has rolled out several programs with the objective of supporting entrepreneurs, building a robust startup ecosystem and transforming India into a country of job creators instead of job seekers. These programs are managed by a dedicated Startup India Team, which reports to the Department for Industrial Policy and Promotion (DPIIT) under the Ministry of Commerce & Industry. Currently, there are 1,19,000+ startups recognised with DPIIT as a part of our initiative.
‘Dunzo karle!’ has now become a common phrase when it comes to delivering groceries and packages. How many companies can claim to have become synonymous with the products or services they offer? Bangalore-based fast delivery app Dunzo’s journey has been a rollercoaster ride like no other. Even now, Dunzo finds itself in the news for all the wrong reasons—layoffs and board members exiting. All eyes are now glued to this startup starlet’s next move; some are even secretly hoping that it could rise from the ashes like a phoenix!
In this article, we revisit Dunzo’s incredible story and explore what lies ahead for this unicorn startup.
Dunzo’s incredible story has a lot to do with its co-founder and CEO, Kabeer Biswas. Biswas was idling and doing nothing much after a stint at Airtel and a few startup ventures later. In 2015, he casually asked three of his friends on WhatsApp what they needed for the day while he ran from store to store to fulfill them. In three months, his customers had grown to 100 through positive word of mouth!
Soon after, Biswas and his team scaled up operations in several cities and registered blistering growth.
It even caught the eye of the big daddies of business across the globe. Reliance Retail picked up a 25.8% stake in the company, making it Dunzo’s single largest stakeholder. Meanwhile, Google chose Dunzo as its first direct investment in India. At present, Google is the second-largest stakeholder, at under 20%.
In its first year of operations, Dunzo dodged the typical startup obstacles, just like one of its delivery boys zigzagging on his bike, by clocking revenues of ₹0.8 crore. Since then, revenues have spiked to ₹67.7 crore in 2022.
Dunzo’s Revenue Growth from 2018 to 2022
Dunzo follows a hyperlocal model of business wherein the demands of the customer are sourced through local shops and on its app.
Quick commerce companies promise door-to-door delivery of essential grocery items at the doorstep of the consumer “quickly”. In Dunzo’s case, this was 19 minutes, to be precise. The COVID-19 pandemic further helped bolster Dunzo’s image. The pandemic elevated the Quick Commerce segment players as saviors. Millions of people stuck indoors were at the mercy of food delivery companies such as Dunzo for essential services.
In a market that was already dominated by delivery giants like Swiggy and Zomato, putting a foot in this sector would mean deep discounts and free deliveries to attract customers. Dunzo had officially bitten the quick commerce bullet. Dunzo’s losses were too huge to be ignored, at ₹464 crore in 2022, around two times what they were a year ago.
“Our best cities generate 14–15% of gross margins. We take that cash, literally a couple of crores a month, and plough it back into our new cities, where we still need to lose money for delivery because we don’t have enough order volume for the delivery cost to drop. But as the (volume) grows, the cost of delivery will drop, and it will start showing the economics that are showing in our most mature cities,” Biswas said in another media interview.
The cash being pumped into Dunzo from its investors didn’t help either.
Since its inception, Dunzo has already raised a massive ₹3,251 crore, according to data researcher Private Circle. This has been done through 12 rounds of funding.
With the world returning to normalcy after the pandemic, there has been a deep correction in the demand surge that Quick Commerce players experienced a few years ago. This has hit hyper-local players below the belt.
The freebies that Dunzo offered came back to bite Dunzo, and its business model had to be restructured. According to a report on Entrackr, Dunzo was losing ₹240 on each of its orders. The speed delivery app was left with no choice but to increase its speed delivery charges and slap additional handling charges onto the customer.
The backbone of Dunzo was its happy customers, who loved the delivery system and the user interface. Soon, there were signs of cracks in this backbone too, as many were not happy with the additional costs.
According to a survey conducted by market research firm Recogn in August–September 2021, only 11% of hyperlocal consumers prefer to use Dunzo. This is just a slice of the pie dominated by Zomato, which has 50% of consumer loyalty, followed by Swiggy at 35%.
Biswas had learned his lesson the hard way. In a media interview two years ago, Biswas said, “We understand why we are spending money, and we have been at fault. We have gotten lucky. We have made mistakes in which money got spent incorrectly, and I very humbly accept the fact that our investors were very nice enough to go ahead and say, haa galti ho gaya iss time (you made a mistake this time), but don’t go ahead and do this mistake again.”
Layoffs and Exits
In the last few months, Dunzo has been on a massive organizational rejig, which may well be a planned one.
According to media reports, Dunzo has laid off 30% of its employees since its fund infusion in April and has deferred salaries as well. Dunzo is shutting down its dark stores nationwide; from 250, it is now less than 10. Dark stores are retail distribution centers that are not open to the public and cater solely to online shoppers.
Another report also talked about Dunzo’s plans to withdraw from its direct-to-consumer model and focus on its merchants, explaining why it was shutting down its dark stores.
In an interview with CNBC-TV18 in February this year, Biswas hinted at layoffs. “This year, there might be changes in the way we have designed the organization and how we have organized the company. Last year, we were organized around just plain growth. But this year onwards, I think because we have found a really large market, a large part of the organization looks at scalable business models, and a smaller one goes ahead and looks at growth. So when you go ahead and do that reorganization, there could be some changes that could happen.” Biswas has said.
Dunzo is also hoping for another round of fund infusions from its investors to the tune of around $20 million, which would pump some oxygen into the beleaguered company. However, it has been unable to garner funds due to valuation disagreements.
However, sirens have now started blaring, with co-founder Dalvir Suri exiting the board a few weeks ago. The latest to join the list of exitees is Head of Finance Sudarshan N, amid reports of another co-founder, Subhas Jha, also quitting.
The spate of bad news seemed to continue for the delivery company as board members Vaidhehi Ravindran from Lightrock and Rajendra Kamath and Ashwin Khasgiwala from Reliance Retail too seemed to have stepped down from the board, according to a newspaper report. The report further said that the members might resume the board once the company locks in another round of funding. The investors seemed to have shown Dunzo ‘the hand’ as far as additional funding.
Conclusion
Given its financial situation, Dunzo has little choice but to rejig its operations and look at other viable options that can keep the company afloat.
The layoffs could help the company with its cash crunch to some extent. Meanwhile, the company has now reportedly shifted focus to Dunzo Merchant Services, its direct business-to-business delivery vertical.
However, time is running short for Dunzo, as its investors would want to buy out the company at lower valuations, in case of irreparable damage. Reliance Retail has a track record when it comes to acquiring companies through distress sales. For instance, furniture retailer Urban Ladder and milk and grocery retailer Milk Basket that it acquired in 2020 and 2022 respectively.
A lot will depend on Biswas’ leadership and how he navigates the company through these bumpy roads. Just like its delivery boys, this time around, Dunzo will have to ensure it delivers its worth on time or succumb to overbearing investors.
FAQs
What exactly does Dunzo do?
Dunzo is an on-demand delivery service operating in India. This company offers a wide range of items and services for delivery, catering to a variety of needs, all at competitive delivery rates.
Who are the founders of Dunzo?
Kabeer Biswas, Ankur Agarwal, Dalvir Suri, and Mukund Jha are the co-founders of Dunzo.
PV Vyshnavi
