Zomato’s rise from a simple menu aggregator to a global food tech powerhouse is a story of relentless innovation and strategic pivots. What began as a solution to help office workers find restaurant menus has evolved into a comprehensive platform that connects millions of users with restaurants worldwide. 

Over the years, Zomato has expanded its services from food discovery to online delivery, premium memberships, and even a robust B2B supply chain with Hyperpure. Today, Zomato stands as a pioneer in the industry, continually reshaping the way people discover, order, and enjoy food, backed by cutting-edge technology and a customer-centric approach.

Let’s walk the ladder of Zomato’s growth one step at a time. Shall we?

Origins of Zomato

2008: The Early Days

Zomato was founded in 2008 by Deepinder Goyal and Pankaj Chaddah, two IIT Delhi graduates, who saw an opportunity when they noticed colleagues struggling to access restaurant menus. Initially named Foodiebay, the platform began as a simple menu aggregator, helping users discover eateries in Delhi. The founders’ vision was clear: make restaurant information easily accessible and empower users with comprehensive, crowd-sourced data on dining options.

Expansion and Rebranding

2010: A New Identity and Rapid Growth

In 2010, the company rebranded itself as Zomato, signaling its shift towards becoming a broader restaurant discovery platform. The new name was catchier, aligning with its goal of scaling rapidly. With a growing user base, Zomato expanded beyond Delhi to other major Indian cities like Mumbai, Bengaluru, and Chennai. It soon attracted investments, securing funding from Info Edge, which allowed the platform to improve its technology and expand its team.

2012-2014: Going Global

Between 2012 and 2014, Zomato embarked on international expansion, entering markets like the UAE, Philippines, South Africa, and the UK. By acquiring local competitors and leveraging its robust database, Zomato established a foothold in new regions quickly. 

This period marked a shift from being a purely Indian service to becoming a global player, making strategic acquisitions such as MenuMania in New Zealand and Urbanspoon in the US, significantly increasing its user base.

Introducing Food Delivery

2015: Entering the Food Delivery Space

Recognizing the shift in consumer behavior towards online food ordering, Zomato entered the food delivery business in 2015. The company started piloting delivery services in select Indian cities, competing directly with emerging players like Swiggy. 

It was a significant pivot from its original business model, requiring a complete overhaul of logistics and partnerships with delivery personnel. This strategic move paid off, as food delivery quickly became one of Zomato’s core revenue streams.

2018: Zomato Gold and Subscription Services

In 2018, Zomato launched Zomato Gold (later rebranded as Zomato Pro), a premium subscription service offering exclusive deals and discounts at partner restaurants. The service was an instant hit, attracting millions of subscribers who enjoyed perks like ‘1+1’ on food and drinks. This initiative not only increased user engagement but also provided a steady revenue stream beyond traditional food delivery.

Technological Advancements and New Ventures

2019: Launch of Zomato Hyperpure

In 2019, Zomato launched Hyperpure, a B2B service aimed at providing fresh, high-quality ingredients to restaurants. Hyperpure sources fresh produce, meat, seafood, and grocery essentials directly from farmers, fishermen, and producers, ensuring reliable and traceable supply chains for its partner restaurants. This venture was part of Zomato’s broader strategy to build a comprehensive ecosystem that enhances the overall quality of dining experiences.

2020: Adapting During the Pandemic

The COVID-19 pandemic brought unprecedented challenges, particularly for the food and hospitality industry. Zomato swiftly adapted by launching a range of new services, including grocery delivery and contactless dining options. 

The company also introduced Zomato Market, leveraging its logistics network to deliver essential groceries, and supported partner restaurants with safety and hygiene protocols. 

Amidst the turmoil, Zomato made the strategic decision to close down its unprofitable international operations, focusing primarily on India. This shift allowed the company to concentrate its resources on strengthening its core business in the Indian market. Despite the difficulties, Zomato emerged stronger, expanding its technological capabilities and innovating to meet changing consumer needs.

2021: Going Public

In July 2021, Zomato made history by becoming the first Indian unicorn startup to go public. Its Initial Public Offering (IPO) was a resounding success, with the company raising over $1.2 billion. 

The listing was a milestone, marking Zomato’s transition from a startup to a publicly traded company. Investors were drawn by the company’s strong brand presence, extensive delivery network, and its vision for growth in the online food services sector.

Scaling New Heights

2022: Expanding Beyond Food Delivery

By 2022, Zomato began exploring new avenues for growth beyond food delivery. It acquired Blinkit, a quick-commerce grocery delivery platform, to tap into the fast-growing market for ultra-fast deliveries. This acquisition was a strategic step towards diversifying its services and strengthening its presence in the broader e-commerce ecosystem.

2023: Growth Story of Zomato Hyperpure

Since its launch, Zomato Hyperpure has seen rapid growth, becoming a crucial part of Zomato’s strategy to build a sustainable and reliable food supply chain. By 2023, Hyperpure was serving over 10,000 partner restaurants across multiple cities in India. 

Its focus on traceability, quality, and timely delivery has made it a preferred choice for restaurant operators looking to source fresh and reliable ingredients. Hyperpure’s success also aligns with Zomato’s broader mission of improving the quality of food served in restaurants while supporting local farmers and producers.

What’s Zomato headed? Times will tell the story but here’s what we think at iU

2024: Leading the Food Tech Space

By 2024, Zomato has cemented its position as a leader in the global food tech industry. With over 100 million monthly active users and operations in multiple countries, the company continues to innovate, focusing on AI-driven personalization for food recommendations and leveraging data analytics to optimize delivery routes and reduce wait times. 

Zomato has also entered partnerships with electric vehicle companies to make its delivery fleet more sustainable, aiming to cut its carbon footprint by 50% by 2030.

Inspiring Story of Zomato in a Nutshell

Zomato’s evolution from a menu aggregator to a global food delivery and tech giant showcases its ability to adapt to changing markets and consumer preferences. Its relentless focus on innovation, customer experience, and social impact has set it apart as a pioneer in the industry.

As Zomato looks to the future, it is well-positioned to continue leading the way in the food tech space, shaping the way people discover, order, and enjoy food around the world.

We all know our Zomato moments: Food Yearned, Food delivered & Food Celebrated & Enjoyed..! Don’t we? In fact, there are times for some when they zomato away their entire week or fortnight without hesitation. This needs reliability & trust & so the brand has earnt it!

References:

1. What’s The Story Of Zomato? – Inc42

2. Zomato’s Journey: The Company That Changed The Way India Eats – YourStory

3. Zomato Case Study: History, Marketing Strategies & Future Plans – The Global Hues