Zomato’s rise from a small Indian restaurant discovery website to a global food technology leader demonstrates bold vision, strategic innovation, and relentless execution. The company transformed the way people interact with food services, evolved into a multi-vertical ecosystem, and leveraged technology to dominate the competitive food delivery and quick-commerce space.
The Early Days: From Menu Listings to Food Discovery
Deepinder Goyal and Pankaj Chaddah launched Zomato in 2008 under the name FoodieBay. The platform initially focused on providing scanned menus and restaurant details for Indian cities. Consumers began using it to explore restaurants, check ratings, and read reviews. This foundation in food discovery created a loyal base of users and offered valuable insights into consumer behavior and restaurant data.
By 2012, Zomato expanded internationally to the UAE, Sri Lanka, and the United Kingdom. Global expansion accelerated brand visibility and proved that the company could adapt to new markets beyond India. The focus on accurate listings, clean user interfaces, and detailed content helped Zomato stand out in the crowded food-tech environment.
Entry into Food Delivery and the Shift in Strategy
In 2015, Zomato entered the food delivery space, marking a pivotal point in its journey. Until then, the company generated most of its revenue through advertisements and restaurant subscriptions. With the rise of Swiggy in India and global delivery trends gaining traction, Zomato decided to integrate food delivery into its core offerings.
Initially, Zomato relied on third-party logistics companies to fulfill deliveries. After acquiring the delivery startup Runnr in 2017, the company built its own delivery fleet to gain control over quality, speed, and customer experience. Zomato also introduced innovative offerings like Zomato Gold, a membership that provided exclusive dining benefits and increased customer retention.
Major Acquisitions and Market Consolidation
Zomato executed strategic acquisitions to expand market share and strengthen operations. The acquisition of Uber Eats India in 2020 proved to be a game-changer. This move gave Zomato access to millions of new users, increased order volume, and reduced competitive pressure in the Indian market. By integrating Uber Eats India into its platform, Zomato quickly crossed the 50% market share threshold in Indian food delivery.
The company also ventured into other verticals to reduce dependency on delivery. Hyperpure, a B2B supply chain initiative, began supplying restaurants with fresh produce, groceries, and packaged goods. This vertical diversified revenue streams and improved relationships with restaurant partners.
In 2022, Zomato acquired Blinkit, previously known as Grofers, to enter the booming quick-commerce market. Blinkit allowed the company to deliver groceries, essentials, and other products within minutes, leveraging dark stores in urban areas. This move aligned with the growing demand for instant delivery and positioned Zomato as a multi-service food and essentials platform.
Technological Innovation and Customer Experience
Zomato invested heavily in technology to streamline operations and enhance user experience. Its advanced algorithms allocate orders efficiently, optimize delivery routes, and reduce delivery times. Predictive models and AI-driven analytics help the company anticipate demand spikes and manage inventory in Blinkit’s dark stores.
Personalized recommendations and targeted offers increase customer engagement. Real-time tracking and intuitive interfaces improve user satisfaction. On the restaurant side, data dashboards and Hyperpure’s integration allow partners to monitor performance, manage supply chains, and reduce wastage.
Global Recognition and IPO Milestone
Zomato’s global recognition reached new heights when it launched its IPO in July 2021. The public listing not only validated its growth story but also marked a milestone as India’s first listed food-tech company. The IPO attracted significant investor attention and strengthened Zomato’s financial capabilities for future expansion.
Zomato maintained a presence in over 20 countries, though it later streamlined operations to focus on high-potential markets. By consolidating resources in India and select international regions, the company maximized operational efficiency and avoided overextension.
Q1 FY26 Performance: Growth with Profit Pressure
In Q1 FY26, Zomato’s parent company, Eternal Limited, delivered revenue from operations of ₹7,167 crore, a year-on-year increase of nearly 70%. Blinkit drove a major part of this growth with revenue surging 155% year-on-year to ₹2,400 crore. Gross order value for the food delivery business reached ₹11,821 crore, supported by 22.9 million monthly transacting users.
Despite the strong revenue growth, net profit fell sharply by 90% to ₹25 crore due to high expenses in quick commerce expansion, marketing campaigns, and employee benefits. Expenses rose 77% year-on-year to ₹7,433 crore, fueled by advertising, delivery costs, and the addition of 243 new Blinkit stores in a single quarter. The company aims to reach 2,000 Blinkit stores by the end of 2025, highlighting aggressive investment in this segment.
Hyperpure contributed ₹2,295 crore in revenue, up 89% from the previous year. Food delivery grew around 17–18% year-on-year and maintained an adjusted EBITDA margin near 5%. Blinkit, while growing rapidly, remained in the investment phase with losses tied to store expansion and customer acquisition.
What Makes Zomato a Global FoodTech Leader
Zomato’s leadership stems from multiple strategic advantages:
- Diverse Business Model: Food delivery, quick commerce through Blinkit, B2B supply with Hyperpure, and event ticketing via its District vertical create multiple revenue streams and reduce dependence on a single source.
- Technology-Driven Operations: AI-powered delivery allocation, demand prediction, and route optimization improve efficiency. Data-driven decision-making allows the company to balance growth with cost management.
- Strategic Acquisitions: Acquiring Uber Eats India, Runnr, and Blinkit helped Zomato consolidate markets, enhance capabilities, and diversify its offerings.
- Brand Trust and Consumer Reach: A large and loyal customer base, combined with high restaurant partner engagement, gives Zomato strong market penetration and repeat usage.
- Innovation Culture: New experiments like ultra-fast delivery, intercity food delivery, and integrated cart experiences show adaptability to evolving consumer expectations.
Challenges and Future Outlook
Despite global recognition and leadership in India, Zomato faces several challenges. Profitability remains under pressure due to quick-commerce expansion and high marketing expenses. Competition from Swiggy and other emerging players demands continuous innovation and cost control. Regulatory considerations in areas like labor laws, delivery partner treatment, and food safety could also affect operations.
Looking ahead, Zomato aims to convert its scale into sustainable profitability. Focus areas include improving Blinkit’s unit economics, optimizing Hyperpure distribution, and increasing order frequency in food delivery. AI-driven demand forecasting and cross-platform synergies between Zomato and Blinkit can enhance efficiency and drive long-term growth.
Conclusion
Zomato’s transformation from a restaurant discovery platform to a global food-tech powerhouse reflects bold strategic decisions, continuous innovation, and a strong technology backbone. Its diversified business model, aggressive expansion, and ability to adapt to market trends have secured its position as a market leader. With the right balance of growth and profitability, Zomato stands poised to shape the future of food and quick commerce both in India and beyond.
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