Friends, in this post we are sharing the success story of Zomato Founder Deepinder Goyal (Deepinder Goyal Zomato Success Story ) . Read here Deepinder Goyal Biography , Zomato History, Zomato Revenue Model, Zomato Growth, Challenges, Controversy, Zomato Networth. Zomato Ki Safalta Ki Kahani
Whenever we feel like eating food from any restaurant, we pick up the mobile and order food online and in no time our favorite food is at our home. Everything is so easy, why? Because Zomato isn’t it!
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Where friends, in today’s era it has become very easy to order food sitting at home and Zomato has a big hand behind this happening. A small idea to solve the problem of office staff in the cafeteria of his office came to the mind of Deepender Goyal and that idea gave birth to zomato media pvt ltd company . In this his partner was co-founder Pankaj Chaddha .
How Deepinder Goyal took zomato to the heights of success, let’s know in zomato success story :
Biography of Dipendra Goyal | Deepinder Goyal Biography
Dipendra Goyal was born in the Muttsar district of Punjab. Both his mother and father were teachers. But despite being related to the teacher family, Deependra was not serious about studies till class VI. After failing in the sixth standard, his eyes opened and he changed his attitude towards studies. However, the road was not that easy either.
In class VIII, he came first in the class due to the teacher telling all the answers. His result in 9th and 10th was good, which increased his confidence. But after 10th he failed again after taking admission in DAV School, Chandigarh. As soon as he gathered his confidence and started studying diligently. As a result, after 12th he passed the IIT entrance examination and took admission in IIT Delhi.
In 2005, Deepinder Goyal obtained the degree of Integrated M. Tech. In Mathematics and Computing in ‘Maths and Computing’ from IIT Delhi . After obtaining M.Tech degree, he got the job of consultant in Bain & Company. In 2007, she married Kanchan Joshi, who was her classmate at IIT Delhi.
History of Zomato Foodiebay.com Launched | Zomato History Foofiebay.com Website
Even after a good job, Deependra was not satisfied. His mind used to think about business ideas all the time. One day he came across a business idea in his office cafeteria. The office staff used to stand in long queues to see the menu in the cafeteria at lunch time. Standing in long queues was a waste of time as well as a tedious task.
To solve this problem of office staff, Deependra made up his mind to take the help of technology. He scanned the menu of the office cafeteria and created a website and put it in it. When the menu became available online, that website also started getting hits.
Then Deependra seriously thought about working on this idea. His idea was to create such a website , in which information about all the hotels and restaurants of the city of Delhi is available. Together with his friend Prasoon Jain, he started a venture called ‘ Foodlet ‘ in Delhi NCR. But soon Prasoon moved to Mumbai and ‘Foodlet’ started struggling.
Then came his colleague Pankaj Chadha, a 2007 passout of IIT Delhi and his colleague at Bain & Company. While in the job, both started the online food portal foodiebay.com in 2008. This food portal was based on the concept of providing the best restaurant to the customer on the basis of location, popularity and rate. Initially 1200 restaurants of Delhi NCR were included in this.
Foodiebay.com Zomato | Foodiebay.com To Zomato
While launching foodiebay.com , Deependra Goyal and Pankaj Chadha did not think of taking it to a large scale and making profit from it. His goal was to solve the problems of the customers. But as the popularity of foodiebay.com started increasing and getting good customer feedback, they started adding more restaurants to it. By the end of 2008 , the number of restaurants in foodiebay.com reached 2000 and it became the largest restaurant directory in Delhi.
By 2009, apart from Delhi, foodiebay.com expanded to Mumbai and Kolkata and by 2010 to Pune and Bangalore . Now Deependra started thinking of taking foodiebay.com to a bigger level. But for this it was necessary to have full focus on the business side. Simultaneously, the need for investment in the company was also felt.
It was not possible to give full time and focus to the business with the job. Meanwhile, Dipendra’s wife got the job of a professor in Delhi University. After getting both mental and financial support from his wife, Deependra left his job and started paying full attention to business.
In 2010 the name of foodiebay.com was changed to zomato. There were two reasons behind changing the name of the company. First, foodiebay.com had to have a similar name to ebay. Deependra and Pankaj did not want any confusion regarding the name of the brand. Second, Dipendra and Pankaj wanted a name that was similar to the food item. In this way the name zomato was born from tomato.
Zomato receives investment | Zomato Funding
After this the search for investors was started. Sanjeev Bikhchandani of naukari.com first appeared as an investor in 2010 . He invested $1 million in Zomato through his parent company InfoEdge . Zomato received an investment of $16.7 million from InfoEdge from 2010 to 2013 . Now 57.9% share of Zomato is with InfoEdge .
In 2013, zomato got new capital investors. Sequoia Capital together with InfoEdge invested $37 million in the company. In November 2013, a new investor, Vy Capital , also joined hands and invested $60 million in the company along with InfoEdge and Sequoia Capital .
At the beginning of 2015, the total investment in Zomato was $113 million. In 2015 itself , a new investor Temasek (Singapore Based Investment Company) along with InfoEdge , Sequoia Capital and Vy Capital came forward and invested 110 million dollars on zomato.
The year 2017 was not a special year for zomato in terms of investment , but it picked up pace again in 2017 when Neeraj Arora of whatsapp joined the list of investors and invested $ 20 million in zomato .
In this way, the total investment in Zomato from 2010 to 2017 was $ 223.8 million.
In March 2018, Alibaba’s Ant Financial invested $150 million in Zomato.
In October 2020, zomato received a fund of $ 52 million from Kora, a US based investment firm.
In February 2021, zomato received a fund of $ 250 million from five investors, which also included Tiger Global Mangaement .
Zomato’s expansion at home and abroad
After receiving capital investment from 2010, Zomato started expanding all over the country. By 2011 it had expanded to Pune, Bangalore, Chennai, Hyderabad and Ahmedabad besides Delhi.
Mobile app plays an important role in the development of any business . Deependra and Pankaj understood that the mobile app would prove to be a milestone for their company. After the launch of the mobile app, the pace of expansion of the company increased further.
In 2012, Zomato expanded to UAE, Sri Lanka, Qatar, United Kingdom, Philippines, South Africa. In 2013, Turkey, Brazil, New Zealand also joined this list.
Where on the one hand the company was spreading at full speed all over the world. At the same time, in order to increase its business, Zomato also started acquiring foreign based companies. In 2013, Zomato acquired Portuguese company “Gastronami” and Italian company Libando. The biggest acquisition came when he acquired American service company ‘NexTable’ . In this way they came into competition in the US market,
In 2015, Zomato acquired MapleOS and created a new customer database. This increased the functionality of Zomato. Now through zomato it has become possible to reserve the table online and make online bill payment .
Revenue Model
Zomato works on 3 types of revenue model .
- Restaurant Advertising – Zomato places paid ads for restaurants on its website and mobile app . Zomato gets about 75% of the income through this paid ad .
- Event Advertisement – Under this revenue model, Zomato promotes the event for restaurant based advertisers and charges amount for it. From this he gets 5% income.
- Consulting Service – Whenever restaurants need advice regarding the area for opening a new outlet/branch , Zomato searches and advises them in this regard and charges consulting fees.
Challenges
The road to success has not been easy for Zomato . He had to face many ups and downs.
1. The first big setback for Zomato came in 2015, when it had to lay off 300 employees due to losses. He had to lay off 10% in the US.
2. The second setback came when Zomato acquired the Urban spoon company. and re-branded it as his own company. But this venture failed.
3. 2016 was the company’s slowest financial year. As a result, it had to rollback its operations in 9 countries – US, UK, Chile, Canada, Brazile, Sri Lanka, Ireland, Italey, Slovakia. He had to go ahead with a remote management service to somehow maintain his presence.
4. In May 2017, the biggest cyber attack happened in Zomato . The hacker hacked the record of 17 million users. The matter of concern was that the overpayment card details were also accessed. But the company said that the name, e-mail, user_ID, user name, password hashes have been hacked. This problem was solved by talking to the hacker. The hacker just wanted to tell the security loophole of Zomato .
5. The company’s PR buildup suffered a setback when the company was about to reach a valuation of billions and HSBC Capital dropped this zomato valuation by 50% ($550 million). Due to which the losses of zomato increased.
Controversy
Zomato had maintained its transparent image since its inception. So there was little room for controversy. Rumors started flying about the internal dispute in the company, when one after the other the management bosses of the company started leaving the company.
In 2018, co-founder Pankaj Chadha left the company citing personal reasons. After two months, CEO Mukund Kulasekaran also left the company without any formal announcement. After 8 months, Sameer Kukreja (President of Zomato Cloud Plateform) also left the company.
All these exits happened when Zomato was facing stiff competition from its competitor Swiggy .
Growth Rate & Success
Zomato has seen a lot of ups and downs. But from 2017 onwards things started getting better. Their customer base increased due to successful business tie-up and Zomato Gold subscription service . Today 40% of Zomato ‘s income comes from online food oding and 12% from Zomato Gold .
In 2017, the company claimed that Zomato is located in profit in 24 countries after introducing the zero commission model. This model was introduced to encourage small businesses and restaurants. After this the company’s revenue has jumped high by covering its losses. According to him the revenue growth in 2017 was 81%. In 2017 itself, Zomato also crossed the milestone of 3 million orders in a month.
2018 was even better for him. This year zomato also completed its 10 years. In this year, after receiving investment from Ant Financial Service , the zomato valuation reached $ 1.1 billion. Due to this zomato media pvt ltd company became a new Indian Unicorn Company . This year the income of zomato was $ 68 million.
Zomato’s revenue touched $206 million in 2019, which was 3 times more than in 2018. Today zomato userbase has reached 62.5 million. It is successfully operating its work in 200 cities of India and 24 countries of the world.
Started with a small idea to solve the problem of its office staff, today this company is not only solving the problem of food of its customers , but is also raising the flag of success for itself. That is why it is said that a small idea has the power to change life. All you need is to trust him and work hard.
Zomato Net Worth and Revenue | Zomato Net Income & Revenue
In the financial year 2021, the net income of zomato was – 816 crores (-110 million dollars) and the revenue was 1994 crores ($ 260 million)
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