The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Tushar Modi, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur
Turning the tables in eCommerce industry, that’s what Zomato has done recently. Valued at just over $1bn, Zomato is the first Indian eCommerce giant to become a Stalwart by turning profitable in 6 out of 18 countries it operates in. Namely, India, the UAE, Lebanon, Qatar, Phillipines and Indonesia.
They have more than doubled their revenue year on year, for the last few years. Its aggressive expansion drive began last year with the acquisition of Urbanspoon for $52mn. The deal was the restaurant discovery and food ordering venture’s biggest inorganic bet and allowed it to venture into the US market. In April, Zomato ventured into food ordering with the launch of Zomato Order. This pitted Zomato against entrenched food ordering startups such as Foodpanda, TinyOwl, Swiggy.
Now that there is no turning back, Zomato wants to put the paddle of growth on full stroke and go for Customer acquisition. Till now they have been very frugal and conscious about spending on marketing themselves. But this news has given their dreams a big boost.
I guess we’ll now wait for Flipkart to announce they’re profitable in some regions at least.