Zomato is one of the leading food service platforms in India in terms of value
of food sold as of March 31, 2021. It was initially launched as “DC Foodiebay
Online Services Pvt Ltd” in January 2010. During FY21, 3.21 crore average
monthly active users visited the platform. It is currently present in 525 cities
in India with 389,932 active restaurant listings. It also has footprints across
23 countries outside India. Over the past 12 years, it has grown from food
discovery platform to a food service platform with four major segments 1)
Food delivery (B2C) – The company is a leader as per RedSeer, 2) Dining out
(B2C) – Provides tools for restaurant owners to acquire customers, 3)
Hyperpure (B2B) – Started in 2019, it provides ingredients and kitchen
products to restaurant partners and 4) Zomato Pro – It is a paid membership
programme which unlocks flat percentage discounts for its customers.
A $110 billion opportunity in next five years: (| 7.7 lakh crore)
Restaurant food or food service contribute only 8-9% of food consumption
market vs. 54%, 58% for US, China, respectively. According to Redseer,
India has an addressable food service market of $65 billion (| 4.5 lakh crore),
set to grow to | 7.7 lakh crore in 2025 as millennials depend less on home
cooked food/kitchen set-up with rising disposable incomes and spending.
Zomato – Strong consumer brand in India
The company’s campaigns, community and content has created a strong
consumer brand in India. In FY21, 68% of their new customers were
acquired organically and not through any paid advertisements. The
company will continue to invest in their branding activities to increase their
brand awareness and leverage its current capabilities into expanding other
related businesses like grocery, fitness and nutraceutical segment.
