Zomato, a leader in food and grocery delivery, has made a significant strategic investment. The company disclosed an acquisition of an 8% equity stake in Byondnxt Smart Home for Rs 6,000. This move marks Zomato’s continued expansion into the tech ecosystem, aligning with its vision to innovate within the food and kitchen sectors. The acquisition follows a board approval, as Zomato decided to purchase 600 equity shares of Byondnxt at Rs 10 per share.
Byondnxt, founded by Eshwar Vikas, specializes in designing and manufacturing smart kitchen appliances. Vikas is also the founder of Mukunda Food, a company where Zomato previously invested USD 5 million for a 16.66% stake. The kitchen appliance startup focuses on the business-to-consumer (B2C) market, contrasting Mukunda’s business-to-business (B2B) model, where smart kitchen equipment is offered to enterprises.
This article takes a closer look at Zomato’s strategic investment, its past ventures, Byondnxt’s role in the kitchen appliance space, and how this acquisition ties into Zomato’s overall growth trajectory.
Zomato’s Strategic Investment
Zomato’s decision to acquire an 8% stake in Byondnxt Smart Home appears to be a calculated move. By entering the smart kitchen appliance market, Zomato is leveraging its expertise in food delivery to tap into the growing demand for innovative kitchen technologies. This investment demonstrates the company’s ambition to expand beyond its core operations and create a broader ecosystem around food services.
The Rs 6,000 investment might seem minimal at first glance, but it represents a significant vote of confidence in Byondnxt’s future potential. Zomato’s decision to purchase 600 equity shares at Rs 10 per share signals its belief in Byondnxt’s ability to disrupt the kitchen appliance market.
This acquisition builds on Zomato’s previous investment in Mukunda Food. In March 2022, Zomato invested USD 5 million for a 16.66% stake in Mukunda, a company that offers smart kitchen equipment to B2B customers. By adding Byondnxt to its portfolio, Zomato is now gaining access to a B2C audience, diversifying its reach in the kitchen and food technology market.
Byondnxt: A Rising Star in Smart Kitchen Appliances
Byondnxt Smart Home, led by founder Eshwar Vikas, has quickly made a name for itself in the kitchen appliance industry. The company focuses on creating smart kitchen appliances designed to simplify the cooking process and improve efficiency in the kitchen. Byondnxt caters directly to consumers, developing cutting-edge products that align with the increasing demand for smart home solutions.
The company’s success in the B2C market complements Mukunda Food’s focus on B2B clients. Mukunda offers kitchen automation systems that help businesses streamline their food preparation processes. Byondnxt, on the other hand, targets everyday consumers looking to bring the convenience of smart technology into their homes.
By acquiring a stake in Byondnxt, Zomato is positioning itself within this rapidly growing sector. The global smart kitchen appliance market has witnessed substantial growth in recent years, driven by advances in AI, IoT, and automation. Consumers are increasingly seeking devices that offer greater convenience and efficiency, making Byondnxt’s product line highly relevant in today’s market.
Zomato’s Financial Growth and Expanding Vision
Zomato’s latest financial report reflects the company’s growth and strong market position. Zomato reported an impressive 389% growth in consolidated net profit for the July-September quarter, with net profits reaching Rs 176 crore, up from Rs 36 crore during the same period last year. This sharp increase underscores Zomato’s ability to expand its services and capitalize on its core business.
The company’s revenue also surged, posting a 68% year-on-year growth, reaching Rs 4,799 crore for the same quarter. These figures highlight Zomato’s success in scaling its operations and capturing a larger market share in the competitive food delivery industry.
The acquisition of Byondnxt aligns with Zomato’s broader vision of building a technology-driven ecosystem around food services. By investing in smart kitchen technologies, Zomato can leverage synergies between its core food delivery services and emerging trends in kitchen automation. The company’s investment in both Mukunda Food and Byondnxt highlights a clear strategy: Zomato is positioning itself at the intersection of food delivery, kitchen automation, and smart home technology.
Synergies Between Zomato and Byondnxt
Zomato’s stake in Byondnxt is expected to generate several synergies. First, Zomato can integrate Byondnxt’s smart kitchen appliances with its delivery platform. For example, Byondnxt’s technology could enable consumers to automate food preparation, making the cooking process more seamless and potentially reducing the time between food delivery and consumption. This integration could enhance the customer experience, making it easier for Zomato users to enjoy freshly prepared meals.
Second, the partnership between Zomato and Byondnxt opens the door for innovative subscription services. Zomato could offer bundled services where customers purchase smart kitchen appliances from Byondnxt alongside a subscription to Zomato’s food delivery services. This would create a recurring revenue stream for both companies while increasing customer retention.
Third, Zomato can tap into the rapidly growing smart home market. According to Grand View Research, the global smart kitchen appliances market size is expected to reach USD 32.88 billion by 2028, growing at a compound annual growth rate (CAGR) of 18.6%. By acquiring a stake in Byondnxt, Zomato is positioning itself within this expanding market, creating new opportunities for growth and innovation.
The Role of Eshwar Vikas: A Visionary Entrepreneur
Eshwar Vikas, the founder of both Byondnxt Smart Home and Mukunda Food, is no stranger to innovation. His ability to identify gaps in the kitchen technology market has allowed him to create two successful companies that cater to different segments of the food industry. Byondnxt’s focus on B2C and Mukunda’s emphasis on B2B complement each other, creating a comprehensive portfolio of smart kitchen solutions.
Vikas has shown a keen understanding of how technology can improve efficiency in both commercial and domestic kitchens. His work with Mukunda Food has already demonstrated how kitchen automation can revolutionize food preparation processes in restaurants and large-scale kitchens. Byondnxt extends this vision to the consumer market, offering smart appliances that simplify home cooking.
Zomato’s investment in Byondnxt is not only a bet on the future of smart kitchen technology but also on Vikas’ leadership. His track record in creating innovative products that meet market demand bodes well for the success of Byondnxt and its future growth under Zomato’s umbrella.
The Bigger Picture: Zomato’s Role in Food Tech Innovation
Zomato’s acquisition of a stake in Byondnxt reflects the broader trend of food delivery companies moving beyond logistics and into technology development. The food tech sector has seen a surge in innovation, with companies like Zomato looking to disrupt traditional food preparation and consumption models. The integration of smart kitchen appliances, AI, and IoT in food services is transforming how people cook and eat.
By investing in Byondnxt, Zomato is signaling its intention to play a leading role in this transformation. The company is not just a delivery platform—it is building an ecosystem that encompasses every aspect of food, from preparation to delivery. This holistic approach positions Zomato as a key player in the future of food technology.
Zomato’s venture into the smart kitchen space comes at a time when consumer preferences are shifting toward convenience and automation. The COVID-19 pandemic accelerated this trend, as more people turned to home cooking and sought ways to simplify the process. Byondnxt’s smart kitchen appliances cater to this demand, offering devices that make meal preparation more efficient and enjoyable.
Conclusion: A Strategic Partnership for the Future
Zomato’s acquisition of an 8% stake in Byondnxt Smart Home represents a strategic move that aligns with the company’s broader goals. By entering the smart kitchen appliance market, Zomato is positioning itself at the forefront of food technology innovation. This investment builds on Zomato’s earlier venture with Mukunda Food, creating a comprehensive portfolio of smart kitchen solutions that cater to both businesses and consumers.
Byondnxt’s expertise in designing and manufacturing cutting-edge kitchen appliances complements Zomato’s leadership in the food delivery space. Together, these companies can create synergies that enhance the customer experience, streamline food preparation, and capitalize on the growing demand for smart home solutions. As Zomato continues to expand its footprint in the food tech sector, this partnership with Byondnxt could pave the way for further innovations and growth in the years to come.
The strategic acquisition also highlights Zomato’s focus on long-term growth and technological integration. By investing in disruptive technologies, Zomato is not only expanding its revenue streams but also securing its position as a leader in the evolving food technology landscape. The future of food services will likely see greater integration between delivery platforms, kitchen automation, and smart home technologies, and Zomato is well-positioned to lead this charge.