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<ul><li>Refreshed <keyword id="4299597" type="General" weightage="50" keywordseo="zomato-gold" source="Orion">Zomato Gold</keyword> plans place the company in a better position against rival <keyword id="6358977" type="General" weightage="20" keywordseo="swiggy" source="Orion">Swiggy</keyword> as it seeks to gain more market share. </li><li>Despite the near-term headwinds like the return of dine-out, and a slowdown in discretionary consumption, analysts maintained a positive outlook on the food delivery segment in the medium-to-long term. </li><li>Market share gains thanks to an aggressively-priced loyalty programme and Blinkit help support the bullish outlook on <keyword id="830092" type="General" weightage="100" keywordseo="zomato" source="Orion">Zomato</keyword>, according to <keyword id="6358584" type="General" weightage="80" keywordseo="hsbc" source="Orion">HSBC</keyword> analysts. </li></ul>Zomato’s stock has been under the pump in 2023, declining by over 12% while the benchmark Nifty50 index has fallen less than 6% so far. However, the analysts at HSBC Global Research think that the markets are undervaluing the longer term prospects of the company as well as the food delivery business overall. Now, with the relaunched Gold plans and Zomato’s push for higher take-rates from its restaurant partners has made analysts bullish on the company as the food delivery industry works towards becoming profitable. Take-rate is the commission that Zomato charges to its restaurant partners. <cmsannotation type="cmsannotation" annotationid="Return of the dine-out eats into food delivery" comment="subhead" text="Return of the dine-out eats into food delivery">Return of the dine-out eats into food delivery</cmsannotation> One of the reasons behind the most recent slump in the Zomato stock is a slowdown in its core business of food delivery. In its December quarter results, the company’s CEO Deepinder Goyal underlined that this is not unique to just Zomato, but an industry-wide trend due to the return of dine-out. “We assume the hyper-growth expectations of the [Dalal] Street have now been suppressed, although current muted growth is likely undershooting the long-term trend,” said a report by HSBC Global, led by analysts Yogesh Aggarwal and Abhishek Pathak. In the near term, the analysts at HSBC expect the gross order value to grow at 9% year-on-year, significantly lower than their previous expectations of 15% growth. In the longer term (two to five years), though, it expects the food delivery segment as a whole to deliver 10-15% compounded annual growth rate (CAGR) due to an improvement in order frequency. Analysts at Kotak Institutional Equities are relatively more optimistic with expectations of nearly 25% YoY growth in GOV in FY23. <cmsannotation type="cmsannotation" annotationid="Slowdown in discretionary spendings another headwind" comment="subhead" text="Slowdown in discretionary spendings another headwind">Slowdown in discretionary spendings another headwind</cmsannotation> Another headwind slowing down food delivery is the slump in discretionary spending due to elevated food inflation. “March 2023 quarter thus, may fail to excite as inflationary pressures, seasonally weak demand (low festival days) and lower number of days in the quarter all play on food delivery demand,” the Kotak report added. According to the analysts at ICICI Securities, discounting could make a comeback in a bear case scenario where discretionary consumption continues to fall. However, that would lead to a de-rating for the food delivery segment as a whole, with Zomato and Swiggy both being forced to keep their profitability plans on the back burner. <cmsannotation type="cmsannotation" annotationid="Clawing back with a refreshed and aggressive loyalty programme" comment="subhead" text="Clawing back with a refreshed and aggressive loyalty programme">Clawing back with a refreshed and aggressive loyalty programme</cmsannotation> The analyst consensus is that the refreshed Zomato Gold loyalty programme with tweaked plans should help the company regain some of its market share, even though it may hurt margins in the near term. <div type="image" title="Zomato Swiggy" msid="98938281" hostid="261" sizebytes="70172" caption="&amp;lt;p&amp;gt;Zomato vs Swiggy | Representational image&amp;lt;/p&amp;gt;"></div> In January, Zomato relaunched Gold at an introductory price of ₹149 for three months, in contrast with the comparable <keyword id="12582902" type="General" weightage="20" keywordseo="swiggy-one" source="Orion">Swiggy One</keyword> plan which costs ₹399. HSBC analysts now expect Zomato to increase its market share to 57% by FY24 from the existing 54%. Since FY20, Zomato has aggressively increased its market share from 44% to 54%, and the new Zomato Gold plans could add more juice, placing the company on a much stronger footing as it works towards profitability. In the short-term, though, the refreshed Zomato Gold plans could dilute margins, but HSBC analysts expect Zomato’s push for higher take-rates to offset some of the impact – the research firm expects Zomato’s take rate to increase from the existing 17.2% to 18.5% in the March 2023 quarter. <cmsannotation type="cmsannotation" annotationid="Blinkit ‘under-appreciated’" comment="subhead" text="Blinkit ‘under-appreciated’">Blinkit ‘under-appreciated’</cmsannotation> Zomato’s Blinkit ₹4,447 crore acquisition has been under the scanner for different reasons, including delaying the company’s push for profitability. However, analysts at HSBC maintained their bullish outlook, stressing that hyperlocal quick commerce will deliver strong growth – they expect Blinkit’s gross order value to double to $2 billion in FY25, from the existing $1 billion. “With increasing volumes we see the potential for quite an improvement in profitability as well,” the HSBC report added, stating that optimisations in terms of technology and logistics can help improve overall profitability. Analysts at HSBC and Kotak Institutional Equities maintained their bullish outlook, expecting an upside between 54% to 64% from the current market price of ₹53 per share. SEE ALSO: <a href="https://www.businessinsider.in/business/news/mukesh-ambani-races-past-gautam-adani-as-richest-indian/articleshow/98910286.cms">Mukesh Ambani races past Gautam Adani as richest Indian: Only Indian in the top 10 in 2023 M3M Hurun Global Rich List</a> <a href="https://www.businessinsider.in/stock-market/news/back-to-square-one-nifty-circles-back-to-levels-last-seen-in-september-2021-markets-likely-to-end-2023-in-the-red/articleshow/98898424.cms">Back to Square One: Nifty circles back to levels last seen in September 2021, markets likely to end 2023 in the red</a> <a href="https://www.businessinsider.in/finance/banks/news/indian-banks-better-placed-than-their-us-peers-due-to-attractive-valuations-and-stickier-deposits/articleshow/98859627.cms">Indian banks better placed than their US peers due to attractive valuations and stickier deposits</a>

Shinier Zomato Gold, better commissions makes analysts bullish in the long term

<ul><li>The company has raised $102.5 million at a $3.4 billion valuation, reported Entrackr.</li><li>With the latest investment, <keyword id="830092" type="COMPANY" weightage="20" keywordseo="Zomato">Zomato</keyword> has raised $319.5 million in 2020 so far.</li><li>The food tech unicorn’s funding will also help it gather steam to fight against its Indian rival Swiggy and the likes of Amazon entering the market. </li></ul>Indian food tech unicorn Zomato has received fresh funds from Tiger Global Management. The company has raised $102.5 million at a $3.4 billion valuation, reported <a href="http://entrackr.">Entrackr.</a> However, recently analysts at HSBC had valued the startup at <a href="https://economictimes.indiatimes.com/markets/stocks/news/hsbcs-brokerage-arm-pegs-zomatos-valuation-at-5-billion/articleshow/77877577.cms">$5 billion.</a> With the latest investment, Zomato has raised over $319.5 million in 2020 so far. Zomato has not released an official statement as of yet. This comes at a time when the company’s operations have been hit by the coronavirus pandemic. Zomato: Fundraising in 2020 <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tiger Global </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$102.5 million </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Temasek </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$62 million </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Pacific Horizon Investment Trust </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$5 million </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Ant Financial </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$150 million </td></tr></tbody></table> In the first quarter of FY21, with most restaurants being shut and operating on a takeaway only business, Zomato reported a revenue of $41 million and loss of $12 million. “In terms of the size of the business, COVID-19 has set us back by a year or so – but a year is only a small blip when you are building a company for the next 100 years,” wrote Zomato CEO Deepinder Goyal in an earlier <a href="https://www.zomato.com/blog/performance-report">blog</a>. Zomato had laid off 1300 employees due to the pandemic. Goyal said that he dreads that 40% of their restaurants will shut down because of the pandemic. The <keyword id="3105315" type="PERSON" weightage="20" keywordseo="Foodtech">foodtech</keyword> unicorn’s funding will also help it gather steam to fight against its Indian rival Swiggy and the likes of Amazon entering the food delivery market. SEE ALSO: <a href="https://www.businessinsider.in/business/news/yatra-failed-merger-with-ebix-dents-the-companys-earnings-in-an-already-troubled-quarter/articleshow/78031342.cms">Yatra's failed merger with Ebix dents the company's earnings in an already troubled quarter</a>

Zomato gets over $100 million from Tiger Global – valuation could hit $3.4 billion

<ul><li>Zomato is re-entering the grocery delivery segment for the third time with the <keyword id="12724311" type="General" weightage="20" keywordseo="blinkit" source="Orion">BlinkIt</keyword> acquisition, which may dig a hole into its balance sheet.</li><li>Shares of the company today slipped over 6% as analysts feel the company has paid more money than it can afford to.</li><li>While the acquisitions will definitely add value to the Zomato’ portfolio, it will now take more time for it to become profitable.</li></ul>Zomato’s official entry into the grocery delivery segment by acquiring Blinkit (<keyword id="2466939" type="General" weightage="20" keywordseo="grofers" source="Orion">Grofers</keyword>) has rattled investors, as the loss-making company is still on its path to profitability. Zomato today said that it will acquire Blinkit Commerce (formerly known as Grofers India) for a total purchase consideration of ₹4,447.48 crore ($568 million). Following the company’s announcement on Friday, its shares today slipped over 6% as analysts feel the company has paid more money than it can afford to. “Given the current market conditions, paying such hefty valuations for Blinkit is not a welcoming move for Zomato. Even though the long term prospect for Blinkit adds value and synergy for Zomato but in the medium to short term it adds pressure on the balance sheet and financials, “ Kranthi Bathini, director of equity strategy at WealthMills Securities told Business Insider India. Third time lucky? No, say experts Zomato is <a href="https://www.businessinsider.in/retail/news/grocery-business-is-like-poison-pill-for-zomato-after-failing-miserably-two-times-as-per-analysts/articleshow/92202068.cms">re-entering the grocery delivery </a>segment for the third time by this acquisition. It may also end up digging a big hole in its balance sheet by competing in a market with <a href="https://www.businessinsider.in/business/news/dmart-and-jiomart-are-unable-to-keep-pace-with-dunzo-swiggy-instamart-ola-dash/articleshow/92431267.cms">deep-pocketed players like </a>Tata, Reliance, Amazon and Flipkart. “To make profit in this segment gestation periods are high and already the main concern for that firm is that it is not profit making. And after the Blinkit acquisition it further delays the profitability period for it,” added Bathini. Some analysts claim Zomato's grocery venture will work as a 'poison pill’. “We claim for Zomato that building a grocery business will work as a ‘poison pill’. It would need reasonably high investment and hence cash burn and is likely to be a significant logistical challenge to execute as well but still Zomato can’t afford not to do it,” said a report by HSBC. A poison pill is an action that can intrinsically lower the value of an organization – a strategy adopted by companies to save themselves from a hostile takeover. In this case however it’s causing an unintended effect. Quick commerce is a strategy says Zomato Zomato however is betting on quick commerce - which it says has been a strategic priority for the last one year. “We have seen this industry grow rapidly both in India and globally, as customers have found great value in quick delivery of groceries and other essentials. This business is also synergistic with our core food business, giving Zomato the right to win in the long-term. Quick commerce will help us increase the customer wallet share spent on our platform and also drive higher frequency and engagement from our customer,” said Zomato. Blinkit is a quick commerce marketplace delivering grocery and other essentials to customers within minutes. The average delivery time of under 15 minutes in the month of May 2022. Zomato will now have to compete with quick commerce players like <keyword id="3275685" type="General" weightage="20" keywordseo="dunzo" source="Orion">Dunzo</keyword>, <keyword id="12437554" type="General" weightage="20" keywordseo="zepto" source="Orion">Zepto</keyword>, Swiggy, <keyword id="8506093" type="General" weightage="20" keywordseo="jiomart" source="Orion">Jiomart</keyword>, Bigbasket, Flipkart Quick, Amazon Fresh and several others. Blinkit app and brand to be separate from Zomato Besides, the food delivery platform plans to keep the Blinkit app and brand separate from Zomato. “Zomato brand stands for everything ‘food’ in customers’ minds, while Blinkit is on the path to becoming a brand that customers associate with grocery and essential supplies,” said the company. However, post the deal closure, they would experiment with various ideas like a Blinkit tab on the Zomato app. “As they say, experiment a lot and keep what works. This remains our guiding motto,” said Zomato. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/the-winds-of-change-are-changing-the-fortunes-of-indian-farmers/articleshow/92487685.cms">The winds of change are changing the fortunes of Indian farmers</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/slow-sowing-wary-global-buyers-can-take-rice-prices-on-the-same-path-as-wheat/articleshow/92489067.cms">Slow sowing, wary global buyers can take rice prices on the same path as wheat</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/good-time-to-replace-your-gadgets-electronics-discounts-are-coming/articleshow/92486904.cms">Good time to replace your gadgets, electronics — discounts are coming</a>

Zomato’s Blinkit buy is a poison pill that will burn cash and delay profits

<keyword id="477607" type="ORGANIZATION" weightage="100" keywordseo="HSBC-Securities-and-Capital-Markets">HSBC Securities and Capital Markets</keyword>, the brokerage arm of <keyword id="6358584" type="CITY" weightage="100" keywordseo="HSBC">HSBC</keyword>, has halved the valuation of Zomato, bringing it down from $1 billion to $500 million, said a note that Zomato's majority investor Info Edge circulated last month. 
 
In the note, concerns have been raised regarding Zomato's ad-heavy business model, its international operations and growing competition in the online food ordering segment, says a Mint report. 
 
"Zomato is present in 23 markets so early on and none is profitable, which implies that to address both the investments in last-mile delivery and losses in international operations, fund-raising will be a continuous phenomenon, suggesting current valuations don't make much sense. We do a discounted cash flow (DCF) analysis and value the business at 50% lower to the $1-billion valuation" HSBC analyst Rajiv Sharma reportedly said in the note. 
 
Last year, Zomato’s valuation has jumped to $1 billion after it had secured funding worth $50 million from Info Edge, Sequoia Capital and Vy Capital. Talking of the overall funding that it has raised since its launch in 2008, the figure comes to around $225 million. 
 Info Edge, which owns a 50.1% stake in the company, has disagreed with HSBC's estimate, with founder and VC <keyword id="295255" type="PERSON" weightage="100" keywordseo="Sanjeev-Bikhchandani">Sanjeev Bikhchandani</keyword> saying that Zomato's "revenue has more than doubled in the last nine months. Costs have been rationalized and burn is down by more than 70% from the peak. The company has plenty of cash and its unit economics are really good." 
 
"We value our investments at cost and Info Edge has not marked down Zomato at all" Bikhchandani added. 
 
"Our ad business in various countries has up to 93% gross margin... We are profitable in eight countries as of today" a Zomato spokesperson told the publication. "We are growing fast and are on course to becoming profitable as a company very soon. Beyond this, we do not want to comment on valuation markdown speculations of third parties." 
 
<a href="http://top10wala.in/wp-content/uploads/2013/07/Shri-Sanjeev-Bikhchandani-Co-founder-CEO-Info-Edge-India-Ltd.jpg">Image source</a>

HSBC halves Zomato's $1 billion valuation. Zomato has zero profitable markets, though Info Edge says revenues have doubled

<a href="http://www.businessinsider.in/HSBC-halves-Zomatos-1-billion-valuation/articleshow/52185955.cms">As reported earlier</a>, HSBC’s brokerage arm has halved Zomato’s valuation, which now stands at $500 million, citing lack of profitable markets. 
 Zomato’s CEO <keyword id="476451" type="UNKNOWN" weightage="100" keywordseo="Deepinder-Goyal">Deepinder Goyal</keyword> has responded to this in a blog post titled Unicorn or Not?, hinting at the former valuation which had made it a Unicorn, a term for companies with $1 billion valuation. He has called the HSBC report an analyst report, which differs from other analysts’ opinions. He also says that the report comes across as being written by someone who doesn’t understand the space of food delivery. 
 
"These assumptions and statements in the HSBC report make it look like they're coming from someone who doesn't - and hasn't bothered to - understand the space well," it says. 
 
He added that in India, Zomato holds a large share of its operational market, citing that it drove over 50% of business to some of the biggest Indian restaurants, with an 8% growth and 33,000 online orders. He added that Zomato will become profitable when the number crosses an average of 40,000 orders a day. 
 
Goyal's letter also talls about its international business, in markets like the Philippines, Australia and Canada, while not forgetting about the company's burn rate, which has come down 70% percent from its peak. He has clearly stated that “Fifteen out of the eighteen countries where we are traffic leaders are yet to see serious monetisation efforts,” while also hinting at the huge scope for improvement in the field. 
 
He ended the note by asking his team to get back to work, and focus on execution. 
 
You can read more from his blog <a href="http://blog.zomato.com/post/144085090016/unicorn-or-not">here</a>. 
 
<a href="https://i.ytimg.com/vi/WKsJ2S0XpK8/maxresdefault.jpg">Image source</a>

Zomato CEO says HSBC’s halved valuation report is half-baked, cites figures and data to support his claim

<ul><li><keyword id="830092" type="COMPANY" weightage="20" keywordseo="Zomato">Zomato</keyword> has raised ₹4,197 crore from 186 anchor investors</li><li>Singapore Government, Morgan Stanley, Tiger Global and others have bid for the IPO.</li><li>The company will open its IPO for retail investors on Wednesday at a price band of ₹72-76.</li></ul>Zomato has raised ₹4,197 crore from 186 anchor investors on Tuesday, July 13, a day before the food delivery and restaurant aggregator business opens its initial public offering (IPO) for retail investors. Several media reports citing sources have highlighted that Zomato got about 30-35 times more bids from anchor investors than it intended to sell in the first place. Marquee investors such as Government of Singapore, Morgan Stanley Investment Fund, Tiger Global Investment Fund, Baillie Gifford Pacific Fund, Fidelity Fund, New World Fund, Canada Pension Plan Investment Fund and Kotak Flexi Cap Fund, among others, were allotted more than 2% of the anchor book. Other anchor investors include JPMorgan, UTI Mutual Fund, Motilal Oswal AMC, HDFC Mutual Fund, ICICI Prudential Mutual Fund, Tata Mutual Fund, Goldman Sachs India, Abu Dhabi Investment Authority, Franklin Templeton, HSBC Asset Management (India). The company has informed the stock exchange that it had allotted 55.22 crore equity shares to the said anchor investors for ₹76 per equity shares. A total of 75% of the issue has been reserved for qualified institutional buyers (QIB), of which anchor investors make up for about 45% of the total issue size. About 25% shares have been reserved for high net with individuals and retail investors. Zomato intended to raise ₹9,375 crore with this IPO. About ₹9,000 crore will be a fresh issue and ₹375 crore will be a secondary issue by InfoEdge. The company will open its IPO for retail investors on Wednesday, July 14, at 10 a.m., at a price band of ₹72-76. Stockbroking<a href="https://www.businessinsider.in/business/startups/news/zomato-ipo-should-you-subscribe-this-ipo-check-out-analysts-view/articleshow/84369234.cms"> firms and analysts</a> do not have a unanimous call on whether retail investors should subscribe to Zomato’s issue or not. While a few have encouraged retail investors to go ahead, a few have raised caution about the company’s financial performance so far and and in the future. Motilal Oswal said that investors with high risk appetite can subscribe to the Zomato issue, whereas Choice Broking has recommended users to subscribe with caution. Motilal Oswal said that Zomato is placed at a sweet spot as the online food delivery market is at the cusp of evolution, but predicting the growth trajectory at this juncture is a little tricky for the next few years. Valuing such early-stage businesses on a plain vanilla financial matrix might not give the right picture and may look distorted, the brokerage added. SEE ALSO <a href="https://www.businessinsider.in/tech/news/amazon-acquires-facebooks-satellite-internet-team-bolstering-its-efforts-to-compete-with-spacex/articleshow/84395065.cms" data-type="tilCustomLink">Amazon acquires Facebook's satellite internet team, bolstering its efforts to compete with SpaceX</a> <a href="https://www.businessinsider.in/business/startups/news/softbank-swiggy-deals-gets-cci-approval-two-days-before-zomato-ipo/articleshow/84347306.cms">SoftBank-Swiggy deal gets CCI approval, two days before Zomato IPO</a> <a href="https://www.businessinsider.in/business/startups/news/payments-firm-mobikwik-files-for-1900-crore-ipo-reportedly-to-seek-1-billion-valuation/articleshow/84347520.cms">Payments firm MobiKwik files for ₹1,900 crore IPO, reportedly to seek $1 billion valuation</a>

Zomato raises ₹4,197 crore from 186 anchor investors, oversubscribed by 35 times

<keyword id="830092" type="COMPANY" weightage="100" keywordseo="Zomato">Zomato</keyword>, the online restaurant search and discovery service startup headquartered in Gurgan, has announced that it processed two million online food orders on its platform in the month of March, thus representing a 23% month-on-month growth. 
 
Also read: <a href="http://www.businessinsider.in/The-Zomato-of-fashion-is-here/articleshow/55354155.cms">The Zomato of fashion is here</a> 
 
In a blog post, Zomato said that the journey from one million orders to two million orders <a href="http://www.businessinsider.in/retail/e-commerce/Zomato-makes-profits-but-losses-also-triple/articleshow/53094564.cms">was not easy</a>, and the company learnt a lot about what matters and what does not <a href="http://www.businessinsider.in/enterprise/Zomato-performace-in-FY16/articleshow/52436254.cms">during this period</a>. 
 
Also read: <a href="http://www.businessinsider.in/HSBC-halves-Zomatos-1-billion-valuation/articleshow/52185955.cms">HSBC halves Zomato's $1 billion valuation </a> 
 
It adds that it has been able to reach the milestone because of better customer retention and a "maniacal focus on customer support." 
 
Also read: <a href="http://www.businessinsider.in/upskill-yourself-with-this-course-and-you-can-land-a-job-with-paytm-zomato/articleshow/57411457.cms">Upskill yourself with this course and you can land a job with Paytm, Zomato</a> 
 
The company, which spends only about $50,000 a month on marketing its online food ordering service, charges an average commission rate of about 8.5% (for restaurant-delivered orders), a major contributor in its financials. 
 
While a few months back, the restaurant supply was available from 12,000 restaurants, it has now gone up to 18,000. 
 
(Image source KnowStartup)

March saw Zomato processing 2 million online orders, with 23% MoM growth

<ul><li>While <keyword id="830092" type="COMPANY" weightage="20" keywordseo="Zomato">Zomato</keyword> has a $3.5 billion valuation now, analysts at HSBC peg the valuation to hit $5 billion – which makes Zomato almost as big as its investor – <keyword id="80004" type="COMPANY" weightage="20" keywordseo="Info-Edge">Info Edge</keyword>.</li><li>Info Edge is a profitable company while Zomato continues to be in losses. </li><li>However, it is worthy to note that the 12-year old Zomato boasts of double the revenue figures as compared to that of 25-year old Info Edge.</li></ul>Zomato – India’s big foodtech unicorn – had recently got everyone’s attention with its latest funding rounds, and the gaze on the startup doubled as it was known to be a pre-IPO round. Zomato’s imminent listing sheds light on another company – its first and one of the biggest investors Info Edge. While Zomato has a $3.5 billion valuation now, <a href="https://tech.economictimes.indiatimes.com/news/corporate/hsbcs-brokerage-arm-pegs-zomatos-valuation-at-5-billion/77873641">analysts at HSBC </a>peg the valuation to hit $5 billion – which makes Zomato almost as big as its investor – Info Edge. Info Edge owns a 22.71% stake in Zomato and has been one of the earliest backers of the foodtech unicorn. One of India’s first internet companies Info Edge is inching closer to a market capitalisation of $6 billion (stood at $5.9 billion on Sept 11 morning) and runs four internet companies – <keyword id="79563" type="COMPANY" weightage="20" keywordseo="Naukri">Naukri</keyword>.com, 99acres.com, Jeevansaathi.com and Shiksha.com. Interestingly, both the companies could see similar valuations even while Zomato’s business continues to be deep in the red, while Info Edge is one of few profitable online businesses. However, it is worthy to note that the 12-year old Zomato boasts of double the revenue figures as compared to that of 25-year old Info Edge. <div type="image" title="Zomato revenue." msid="78055809" hostid="261"></div> Meanwhile, Info Edge recently released its Q1 earnings and its revenue was down by 10.4% at ₹280.1 crore. However, the company’s businesses had been growing significantly until the pandemic struck. In FY20, Info Edge had posted a net profit of ₹200.8 crore. Info Edge’s revenue from different verticals (in ₹ mn) <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Info Edge </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY16 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY17 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY18 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY19 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY20 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Recruitment </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5,290 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5,953 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6,688 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7,858 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9,068 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Matrimonial </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> 476 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">580 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">687 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">723 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">847 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Real Estate </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,083 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,122 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,354 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1,920 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2,280 </td></tr></tbody></table> In an earlier interview with Business Insider, Hitesh Oberoi, CEO of Info Edge had said, “We had invested in Zomato, when it wasn’t even called so. It was called foodiebay then. When we had started investing, there was no SoftBank – we were in the mindset to start investing in businesses that we understand.” Talking about startups going the IPO way, Oberoi had said, “What everyone is waiting to see is how fast these businesses can get to profitability. It’s clear they are solid businesses, services we love. The question is not whether they are here to stay and what is the right value which will be determined through an IPO.” Zomato’s fundraising According to <a href="https://economictimes.indiatimes.com/markets/ipos/fpos/zomato-plans-to-file-for-ipo-in-first-half-of-2021/articleshow/78041305.cms">reports</a>, Zomato CEO Deepinder Goyal in an email to his employees said that the company is looking to list publicly in the first half of 2021. Goyal also spoke about the company’s funding and said that the company has $250 million in the bank and as their current round wounds up they will have $600 million. The news came as Zomato raised $102.5 million from Tiger Global Management at a $3.4 billion valuation. Zomato: Fundraising in 2020 <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tiger Global </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$102.5 million </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Temasek </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$62 million </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Pacific Horizon Investment Trust </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$5 million </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Ant Financial </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">$150 million </td></tr></tbody></table> The success or failure of Zomato’s IPO will also have a bearing on Swiggy The IPO will lead to the discovery of value for Swiggy, which was valued at $3.6 billion as of its last fund raise in April 2020. While Zomato had done away with one competition with its acquisition of UberEats in January 2020, the online food delivery segment is in focus once again as the likes Amazon too have entered the space. According to a Redseer report, India’s total online food delivery gross merchandise value (GMV) is expected to be $13 billion by 2024 while clocking 12 million daily orders on an average. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/zomato-gets-over-100-million-from-tiger-global-valuation-could-hit-3-4-billion/articleshow/78036376.cms">Zomato gets over $100 million from Tiger Global – valuation could hit $3.4 billion</a> <a href="https://www.businessinsider.in/business/ecommerce/news/flipkart-says-its-has-onboarded-50000-kirana-stores-for-the-festive-season/articleshow/78011869.cms">Flipkart says it has onboarded 50,000 kirana stores for the festive season</a> <a href="https://www.businessinsider.in/business/startups/news/byjus-funding-streak-continues-valuation-hits-10-8-billion-with-fresh-funds-from-silver-lake/articleshow/77994836.cms">BYJU’S funding streak continues – valuation hits $10.8 billion with fresh funds from Silver Lake</a>

Zomato’s IPO could make the company as valuable as one of its biggest investors – Info Edge

<ul><li>The foodtech unicorn’s CEO Deepinder Goyal also said that many cities in India have also surpassed their pre-COVID order numbers.</li><li>He added that since the announcement of a country-wide lockdown on March 23, <keyword id="830092" type="COMPANY" weightage="20" keywordseo="Zomato">Zomato</keyword> has delivered a total of 9.2 crore orders. </li><li>This surely comes as good news for Zomato which is reportedly heading for an IPO in early 2021.</li></ul><keyword id="2705661" type="PERSON" weightage="20" keywordseo="Zomato-CEO">Zomato CEO</keyword> Deepinder Goyal took to Twitter to share that <keyword id="7083350" type="UNKNOWN" weightage="20" keywordseo="food-delivery-in-India">food delivery in India</keyword> has reached pre-COVID levels. The foodtech unicorn’s CEO also said that many cities in India have also surpassed their pre-COVID order numbers. <div type="twitter" handle="deepigoyal" handlename="Deepinder Goyal" image="http://pbs.twimg.com/profile_images/1266605194948808704/vcXbgfyz_normal.jpg" favoritecount="196" retweetcount="57" status="Happy to share that India food delivery volumes have reached pre-COVID peaks. A number of cities are now at over 12… https://t.co/8zKCsOX1ka" createdat="1602486016000" id="1315547820045131777"></div> Goyal also said that going forward, he expects the <keyword id="6376068" type="UNKNOWN" weightage="20" keywordseo="food-delivery">food delivery</keyword> sector to continue to grow at 15-25% month-on-month. He added that since the announcement of a country-wide lockdown on March 23, Zomato has delivered a total of 9.2 crore orders. In a mid-year report published by the company in September, Zomato had said that Delhi and Mumbai were nearing full recovery (95% of pre-COVID). And it wasn’t just the order numbers but also the transaction volume that has been increasing for Zomato. “With more premium restaurants, i.e. restaurants where a meal for two may cost ₹1500 and above, now opening up to online delivery, a larger number of affluent consumers are embracing online ordering. Overall spends on such premium restaurants have grown by over 25% over pre-COVID levels,” wrote <a href="https://www.zomato.com/blog/mid-covid-report-2">Goyal in the report.</a> Good news for Zomato ahead of its IPO This surely comes as good news for Zomato which is reportedly heading for an IPO in early 2021. While Zomato has a $3.5 billion valuation now, <a href="https://tech.economictimes.indiatimes.com/news/corporate/hsbcs-brokerage-arm-pegs-zomatos-valuation-at-5-billion/77873641">analysts at HSBC </a>peg the valuation to hit $5 billion. According to <a href="https://economictimes.indiatimes.com/markets/ipos/fpos/zomato-plans-to-file-for-ipo-in-first-half-of-2021/articleshow/78041305.cms">reports</a>, Zomato CEO Deepinder Goyal in an email to his employees said that the company is looking to list publicly in the first half of 2021. Goyal also spoke about the company’s funding and said that the company has $250 million in the bank and as their current round wounds up they will have $600 million. The news came as Zomato raised $102.5 million from Tiger Global Management at a $3.4 billion valuation. SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/razorpay-is-the-latest-to-join-the-unicorn-club-with-its-new-100-million-fundraise/articleshow/78612631.cms">Razorpay is the latest to join the unicorn club with its new $100 million fundraise</a>

Ahead of its imminent IPO – Zomato CEO says food delivery in India has reached pre-COVID levels

<keyword id="830092" type="COMPANY" weightage="100" keywordseo="Zomato">Zomato</keyword>, the online restaurant discovery and food ordering service, has seen its losses growing up in big numbers, given that it has started to put in big money on online food delivery services, even as the Indian food-tech category is struggling to survive. 
 
For FY 2015-16, the loss before tax was up by 262% and reached Rs 492.3 crore, while it was Rs 136 crore in the previous year, revealed Info Edge, a majority investor in Zomato. 
 
Also, the operating revenues have nearly doubled to Rs 184.97 crore for FY 15-16 from Rs 96.7 crore in the previous year. 
 
It was in February that Zomato had claimed that it has <a href="http://www.businessinsider.in/Zomato-achieves-operational-breakeven-in-six-countries-including-India/articleshow/50898853.cms">achieved operational break even </a>in six countries, viz. India, the UAE, Lebanon, Qatar, the Philippines and Indonesia. 
 
However, the year has not been easy for the Gurgaon-based company, which laid off about 10% of its workforce in October 2015, while <a href="http://www.businessinsider.in/Zomato-shuts-down-its-online-ordering-service-in-Lucknow-Kochi-Indoreand-Coimbatore/articleshow/50534661.cms">rolling back online ordering </a>in four cities in January 2016. It also shifted its strategy so that it can emphasise more on its enterprise products in the newer markets. 
 
However, not just Zomato, the entire food-tech category is <a href="http://www.businessinsider.in/Online-food-retailers-will-have-to-register-with-FSSAI-now/articleshow/51716970.cms">struggling in India </a>because of a funding slowdown, with several companies either shutting down or getting acquired by larger companies. 
 
Earlier this month, HSBC Securities and Capital Markets, the brokerage arm of HSBC, had also <a href="http://www.businessinsider.in/HSBC-halves-Zomatos-1-billion-valuation/articleshow/52185955.cms">slashed the valuation </a>of Zomato by half, raising concerns around the ad-heavy business model, something that owner <keyword id="476451" type="UNKNOWN" weightage="100" keywordseo="Deepinder-Goyal">Deepinder Goyal</keyword> had objected to in a <a href="http://www.businessinsider.in/Zomato-CEO-says-HSBCs-halved-valuation-report-is-half-baked-cites-figures-and-data-to-support-his-claim/articleshow/52187426.cms">blog post</a>. 
 
<a href="https://tctechcrunch2011.files.wordpress.com/2014/08/zomato_app1_hi-res-l.jpg">Image source</a>

You Searched For "HSBC Zomato valuation" and got 10 results

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