From its humble origins as a restaurant discovery platform to a financial turnaround rare startup—and now a coveted member of India’s foremost Nifty 50 index—Zomato’s journey is a captivating narrative of vision, perseverance, determination as well as strategic transformation, especially when it comes to startup. Discover the Zomato story – how the startup transformed itself from debt-ridden to a blue-chip NIFTY50 Company.
The Zomato Story: From Menu Listings to Investor Woes
Founded in 2010 as Foodiebay (later rebranded to Zomato), Deepinder Goyal and Pankaj Chaddah launched the platform with a clear-cut value proposition: provide menus, photos, and reviews for restaurant discovery.
By 2018, Zomato had earned unicorn status with a $200 million fundraising led by Alibaba’s Ant Financial—but the cost was steep, with cumulative losses soaring over ₹4,000 crore between 2019 and 2021
Zomato Crisis and a Bold IPO Choice
The early phase of the COVID-19 pandemic nearly brought Zomato to its knees—order volumes plunged, and investor funding evaporated amid geopolitical tensions. With only six months of cash runway, the only viable path forward was to go public.
The 2021 IPO raised ₹9,375 crore at a valuation north of ₹9,000 crore, oversubscribed an astounding 38 times, offering a lifeline at a critical juncture.
Also Read: Why You Shouldn’t Subscribe to Every IPO with a “Buy” Rating
Post-IPO Fears and Strategic Realignment
Despite the initial success, Zomato’s stock declined nearly 70% within six months. The reason? Investor skepticism over its losses and intense rivalry from Swiggy along with emerging quick commerce rivals like Zepto and Blinkit.
In 2022, betting on quick commerce growth, Zomato acquired Blinkit for $568 million—all stock—in a controversial move that amplified short-term losses but signaled long-term ambition
Zomato Story: The Turnaround that Shook the Market
Between 2022 and 2023, Zomato executed a smart turnaround (Source):
Exiting unprofitable operations: Drew back from 225 low-volume cities, prioritizing metro and Tier-1 markets, which generated 75% of its revenue
Cost optimization: Reduced headcount by 4%, saving ₹300 crore annually; streamlined logistics and ramped up delivery-unit efficiencies.
Revenue recalibration: Increased commission rates from 27% to 33%, boosting topline by ~15%; Blinkit logistics were integrated to further cut costs
Financial turnaround: FY-22 saw revenue grow to ₹4,192 crore from ₹1,994 crore, but
losses surged. In FY-23, adjusted revenue rose to ₹7,079 crore while losses
narrowed to ₹971 crore. By FY-24, Zomato’s revenue soared by 71% to a whooping
₹12,114 crore and finally net profit turned positive at ₹351 crore.
Q1 FY-25 continued the trend: ₹4,206 crore revenue and ₹253 crore profit. Impressively, its debt-to-equity ratio remained negligible at 0.04x, confirming its nearly debt-free status.
Riding the Rocket: Zomato Stock Resurgence
Zomato’s stock, once languishing at a 2022 low of ₹42, staged a dramatic recovery. (Source) After reporting its first profit in Q1 FY-24, investor interest soared; by September 2024, the stock traded around ₹268.
Moreover, inclusion in NSE’s Futures & Options segment in November 2024 added significant liquidity and market visibility, causing a near 5% intraday bump.
The Blue-Chip Breakthrough: Entering Nifty 50
The ultimate validation came in March 2025, when Zomato—now rebranded under parent company Eternal Limited—was officially inducted into the Nifty 50 index, joining Indian blue-chip stalwarts from March 28, 2025.
Analysts estimated this move would inject approximately $602 million in passive inflows
Fortune India.
Notably, replacing traditional players BPCL and Britannia, the inclusion of high-growth tech-oriented names like Zomato and Jio Financial Services raised the Nifty 50’s trailing P/E ratio by 2.5%—mirroring a broader shift to the digital economy. (Source)
The move did spark criticism from some market veterans, who argued that newer companies like Zomato lacked an established trading history and stable earnings track record.
Zomato’s Lessons for Indian Startups
Zomato’s evolution—from near-bankruptcy to profitability and blue-chip distinction—is more than a business case; it’s a blueprint for resilience.
Key takeaways include:
- Leading with unit economics, not just aggressive expansion.
- Making brave structural cuts, even when unpopular.
- Betting on strategic acquisitions to redefine market scope.
- Leveraging technology-driven efficiencies such as optimized delivery logistics.
- Embracing financial discipline to evolve into a nearly debt-free, high-margin enterprise.
As Zomato’s Nifty 50 induction shows, dynamic startups can transcend short-term turbulence when grounded by decisive leadership and financial prudence. For long-term investors and founders, the Zomato story illuminates the road from survival to stellar success.
