Online food delivery platform Zomato has decided to narrow its focus on three key areas of food ordering and delivery; supplies to restaurants through 'Hyperpure' and quick commerce, company Chairman Kaushik Dutta said on Tuesday. In his address to shareholders at the company's annual general meeting, Dutta said the move was part of strategy to focus "only on areas that have the potential to become meaningfully large businesses ten years from now". In FY22, he said Zomato was able to achieve strong top line growth while keeping its "adjusted EBITDA burn under control", despite multiple challenges such as disruptions due to Covid-19 pandemic, macro-economic uncertainty, rising inflation, fuel prices, among others.
Something is cooking in online food delivery. After 15 years of grappling with the demands of the business - read cash burn - Gurugram-based Zomato reported its first profit in the first quarter of 2023-24 (FY24). Not satiated, it reported a profit in the following quarter as well: Of Rs 36 crore in the second quarter compared to Rs 2 crore in the first. A year ago, in the second quarter of FY23, it had reported a loss of Rs 251 crore.
Zomato acquired US-based rival Urbanspoon for about $60 million in one of the biggest overseas deals by an Indian startup
A tweet from a user who goes by the handle '@Vikash67456607' triggered a major Twitter backlash, with the hashtag 'Reject_Zomato' trending on top at the microblogging site. In response, Zomato apologised to Vikash and also issued a statement both in Tamil and English, stressing that the company stood for diversity.
Food delivery platform Zomato's initial public offering was oversubscribed on the opening day on Wednesday with retail investors bidding for 2.7 times the number of shares reserved for them. The offer received bids for 75.60 crore equity shares against an IPO size of 71.92 crore, stock exchange data showed. Retail investors sought 2.69 times the portion reserved for them. Against 12.95 crore shares reserved for retail individual investors, 34.88 crore shares were bid by 1700 hours.
India's first unicorn Zomato will make its stock market debut on Friday, marking a historic moment for the domestic capital market. As per initial schedule, Zomato's listing was to take place on July 27. However, investment banks managed to complete the share allotment and listing formalities ahead of the deadline. Under the Sebi framework, the timeline between IPO closing and listing has to be six working days. Zomato's IPO had closed on July 16.
Flipkart co-founder Sachin Bansal on Friday took pot shots at Snapdeal saying India should not be blamed for the latter's failure to hire "great engineers".
The layoffs will be restricted to the Indian business.
Byju's, Flipkart, PharmEasy and CRED, among others, have taken the acquisition route to grow
Unacademy on Monday said it has raised $440 million (about Rs 3,270.8 crore) in funding from a clutch of investors including Temasek, General Atlantic, and Softbank Vision Fund, valuing the edtech major at $3.44 billion. The investment is expected to help Unacademy expand its offerings, deepen its presence and compete more aggressively against rivals such as Byju's in the burgeoning ed-tech space in India that has been witnessing strong uptake amid the pandemic. The series H round was led by Temasek, with super pro-rata participation from General Atlantic, Tiger Global, and Softbank Vision Fund, a statement said.
Uber Eats in India will discontinue operations and direct restaurants, delivery partners, and users of the Uber Eats apps to the Zomato platform, effective Tuesday, a statement said. The deal comes days after Zomato had raised USD 150 million in funding from existing investor Ant Financial, an Alibaba affiliate, at a USD 3 billion valuation.
Zomato and Swiggy
NextTable is the ninth acquisition for Zomato in the past year.
'We work with a very large restaurant base, we make sure that we're doing the right thing by them, and we're helping them grow because we'll grow only when they do.'
After new-age tech companies reported better-than-expected June quarter (Q1FY23) results, analysts said it will be a long road to recovery for their respective businesses and the stock prices. Moreover, brokerages differ on whether it is the right time to own these stocks. The common thread, however, that runs across most brokerages is Zomato, where they suggest buying the stock with the one-year target price ranging between Rs 60 - 115, translating into an upside of around 9 - 109 per cent from the current levels. The company's gross order value (GOV) of food delivery jumped 10 per cent quarter-on-quarter (QoQ) and 42 per cent year-on-year (YoY) in Q1, aided largely by growth in volume, and mild growth in average order value (AOV) at 1-2 per cent. The company also broke even on an adjusted Ebitda basis during the quarter.
The company, backed by China's Ant Group, is planning to issue fresh shares worth Rs 7,500 crore in the IPO. This will make this India's third-largest offering after Reliance Power and DLF.
Last year, Zomato was in the news for reportedly dismissing 250-300 employees.
Internet entrepreneurs are the next big thing in India.
The IPO will be sometime in the first half of next year.
Housing.com CEO takes a dig at Vishal Sikka.
In February, Zomato had said that it had become profitable in six regions, including India, after achieving operational break-even of its businesses.
Zomato is investing in setting up infrastructure, which existing restaurants will be able to use'.
Quick commerce startups hope to race towards better days. Can they crack the execution code?
The company has announced a global tie-up with San Francisco-based Uber.
The Gurugram-based company had acquired Lucknow-based drone manufacturer and consultant start-up TechEagle in December, to expand food delivery using drones
Amid oxygen shortage and a faltering health system in the country, India is seeing over 300,000 cases daily.
It has once again returned to strong growth after a brief hiatus, spurred by the return of investors' confidence (and cash) in India's online food ordering sector.
Brands should do something, but it should be done discreetly.
These workers have been asked to undergo a 30-day performance improvement plan.
Start-ups don't care that mad-money funding comes to a hard stop after an IPO, observes Debashis Basu. As a listed entity, corporate actions have to take the interests of all shareholders, especially minority shareholders, into account. So far, we are not seeing any sign of it, observes Debashis Basu.
'All these incidents go to show that the day of the anodyne, apolitical corporation is running out fast,' says Kanika Datta.
Help came from Sanjeev Bikchandani, founder and executive vice-chairman of Info Edge, the main investor in Zomato.
Zomato, the India-based global restaurant search and discovery business entity, has accelerated plans to get into new products like online food ordering.
'There is no doubt at all that Jio's disruption of the mobile broadband market was a turning point for India's digital economy.'
'One good thing that has come out of all this is that it shown people that online ordering is the way forward.'
A slew of Indian firms, including Flipkart, Byju's and Zomato, is building a path to profitability and diversifying into newer business segments ahead of mega-IPO plans.
India's online listing space is witnessing phenomenal growth.
Arnab Dutta traces how Bira 91 is already among the top two in the premium segment in all the cities that it is present in today and how it is giving larger brands Kingfisher and Budweiser a run for their market share.
None of the top five start-ups launched by IITians - Flipkart, Zomato, Ola Cabs, Housing.com and Inmobi - were incubated at IITs
Ramping up globally, the Indian restaurant search service is going as local as possible in its markets to improve its brand's stickiness.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances