From Bain & Company Cafeteria to ₹2 Lakh Crore: The Zomato Story

In 2008, two IIT Delhi graduates stood in long queues at Bain & Company's cafeteria, frustrated by the time wasted finding restaurant menus. So they scanned menus, uploaded them to an internal website, and named it FoodieBay. Seventeen years later, that frustration became Zomato—India's largest food delivery platform with 58% market share, ₹1.95-2.2 lakh crore market cap, and over 1.5 million daily orders. This is the story of how Deepinder Goyal and Pankaj Chaddah quit their consulting jobs with no backup plan, survived near-bankruptcy, expanded to 24 countries, and built India's most valuable food-tech company. From rejection to unicorn to IPO sensation—this is Zomato.

The Origin: Lunch Break Frustration (July 10, 2008)

Deepinder Goyal was born on January 26, 1983, in Muktsar, Punjab, to a middle-class family of educators. After completing B.Tech in Mathematics and Computing from IIT Delhi in 2005, he joined Bain & Company as a Senior Associate Consultant in January 2006. There he met Pankaj Chaddah, another IIT Delhi graduate (2007 batch).

At Bain's Delhi office, colleagues struggled to find nearby restaurant menus and had to wait in long queues to catch a glimpse of the menu card. This workplace frustration sparked a simple idea: why not create a website where people can discover restaurant menus online?

On July 10, 2008, Deepinder Goyal and Pankaj Chaddah launched FoodieBay while still working at Bain & Company. They started by scanning menus and creating an internal website for Bain employees using the company intranet. To their surprise, the website was a hit and received heavy traffic. The idea resonated beyond Bain—there was a broader market need.

The Leap: Quitting Stability for Uncertainty (November 2009)

Within nine months, FoodieBay became the largest restaurant directory in Delhi NCR by late 2008. The platform quickly expanded to Mumbai and Kolkata. The traction convinced Goyal and Chaddah that this could be more than a side project.

In November 2009, they quit their jobs to focus on the website full-time. It was a terrifying decision. Deepinder's family was reluctant about him leaving his stable job at Bain to join the startup journey and lifestyle. Working for 24 hours was never a cakewalk, especially when there was pressure from parents upon leaving a well-settled job.

The company was officially incorporated on January 18, 2010, as DC Foodiebay Online Services Private Limited. They bootstrapped initially, working long hours and depending on personal savings. The team was just six people, operating lean and hungry—literally and metaphorically.

The Rebrand: FoodieBay Becomes Zomato (November 2010)

In November 2010, the website was renamed Zomato. The founders were unsure if they would "just stick to food" and wanted to avoid a potential naming conflict with eBay. The name "Zomato" was chosen to make it more prominent and easier to memorize, reflecting a more expansive vision.

A mobile app for Zomato was released the following month. With smartphone adoption accelerating in India, having a mobile presence was crucial. The app allowed users to browse menus, read reviews, and discover restaurants on-the-go.

The First Big Break: Info Edge Investment (2011)

The turning point came in 2011 when Info Edge India (the company behind Naukri.com) invested $1 million in Zomato. This funding was a morale booster that validated their vision and provided capital to expand into new cities.

Between 2010 and 2013, Zomato received its biggest funding of approximately $16.7 million from Info Edge India, giving them a 57.9% stake in the company. This partnership proved invaluable—Info Edge understood internet businesses and provided not just capital but mentorship.

In 2011, Zomato expanded across India to Delhi NCR, Mumbai, Bangalore, Chennai, Pune, Ahmedabad, and Hyderabad. The platform also introduced online ticketing for events on its website and launched zomato.xxx, a site dedicated to food porn, following the introduction of .xxx domains.

Global Ambitions: 24 Countries in 24 Months (2012-2014)

In 2012, Zomato aggressively expanded internationally to several countries, including the United Arab Emirates, Sri Lanka, Qatar, the United Kingdom, the Philippines, and South Africa. The global expansion continued rapidly—by 2019, Zomato had grown into a major international restaurant aggregator with operations in 24 countries and more than 10,000 cities.

To fuel this expansion, Sequoia Capital joined Info Edge in November 2013, raising a total of $37 million. In 2014, another funding round from Info Edge, Sequoia, and new investor Vy Capital raised $60 million.

During this period, Zomato acquired companies to accelerate growth. In 2014, it acquired Gastronauci (Poland's restaurant search service) and Cibando (Italian restaurant finder). In 2015, Zomato acquired MapleOS to expand operations and build a new customer database, enabling online table reservations and mobile bill payment.

The Food Delivery Pivot: Changing the Business Model (2015)

In 2015, Zomato entered the food delivery market in India, which soon became its core business. This was a fundamental pivot—from being an information platform (restaurant discovery) to a transaction platform (food delivery). The shift required building an entirely new infrastructure: delivery fleet, kitchen partnerships, logistics technology, and customer support.

The move proved prescient. Food delivery became Zomato's largest revenue generator, eventually accounting for the majority of business. As of 2023, Zomato provides food delivery and table reservation options in more than 800 Indian cities, and restaurant discovery services in the UAE.

The Struggle Years: Losses and Learning (2015-2017)

Growth came with pain. Zomato was burning cash rapidly, expanding without clear path to profitability. Competitors like Swiggy were emerging strong. There were layoffs, market exits, and difficult decisions.

In 2017, the company claimed to have turned profitable in all 24 countries they operated in, rolling out a zero commission model to give impetus to small businesses and restaurant owners. Revenue grew by 81% that year. In 2017, the online ordering service of Zomato also crossed the milestone of 3 million orders in one month.

Unicorn Status: The $1.1 Billion Valuation (February 2018)

In February 2018, after funding from Ant Financial Services, Zomato's valuation reached an unprecedented $1.1 billion, achieving unicorn status in its Series H funding round. This made Zomato Media Pvt. one of India's most valuable startups.

The unicorn journey had hit roadblocks, but as Deepinder often said, they refused to give up. New initiatives such as cloud kitchens and Zomato Gold (a subscription program) were launched during this period, despite the latter attracting criticism that hurt the company's goodwill to some extent.

Leadership Changes: Pankaj's Departure (May 2018)

In May 2018, co-founder Pankaj Chaddah resigned to found his own venture, Shyft. Deepinder described Pankaj as a "turning point for the company" in the early days. The departure marked the end of the founding duo, with Deepinder assuming sole leadership as CEO.

The Big Acquisition: Uber Eats India (2020)

In 2020, Zomato acquired Uber Eats India in an all-stock deal, significantly strengthening its market position against Swiggy. The acquisition added users, restaurant partnerships, and delivery infrastructure, helping Zomato consolidate leadership.

By December 2020, Zomato closed a $660 million primary financing round at a post-money valuation of $3.9 billion, setting the stage for an IPO.

The Historic IPO: July 23, 2021

On July 14-16, 2021, Zomato launched India's most anticipated tech IPO. The Rs 9,375 crore public offering comprised fresh issuance of Rs 9,000 crore and an offer for sale of Rs 375 crore from shareholder Info Edge. The issue price was set at Rs 76 per share with a lot size of 195 shares.

The IPO was oversubscribed 38 times, demonstrating massive investor appetite. Zomato raised Rs 4,196.52 crore from anchor investors alone. The finalization of allotment occurred on July 22, 2021.

On July 23, 2021, Zomato listed on BSE and NSE. The shares debuted at Rs 125.8, a significant premium over the issue price, and the market cap quickly crossed Rs 1 lakh crore. At listing, Zomato was valued at over $13.3 billion (Rs 64,365 crore). It was the largest IPO in India in 2021 and one of the largest tech IPOs ever.

The Blinkit Game-Changer (June 2022)

In June 2022, Zomato announced acquisition of Blinkit (formerly Grofers) for approximately $568 million in a stock deal. This was Zomato's biggest acquisition, entering the quick commerce space—delivering groceries and essentials in 10-15 minutes.

The move proved transformational. In Q3 FY25 (ending December 2024), Blinkit's revenue grew 117.23% YoY to Rs 1,399 crore. Blinkit is rapidly expanding its dark store network, targeting 1,000 stores by end of FY25 and 2,000 micro-warehouses by 2026.

Financial Performance: From Losses to Profits (2021-2024)

Zomato's financial journey has been remarkable. Revenue in FY23 was Rs 7,079 crore, up 91% YoY. The company turned profitable with a net profit of Rs 63 crore versus losses in prior years—a landmark achievement.

In 2024, the company made revenue of Rs 179.72 billion (Rs 17,972 crore), an increase from Rs 105.63 billion in 2023. Current revenue (TTM ending mid-2025) is Rs 215.01 billion (Rs 21,500+ crore).

Market Dominance: 58% Share and 1.5 Million Daily Orders (2024-2025)

As of early 2025, Zomato commands over 55-58% of the Indian food delivery market. The company delivers over 1.5 million orders daily—a staggering volume showcasing market leadership.

The market capitalization surged to approximately Rs 1.95-2.2 lakh crore by early 2025, driven by profitability milestones and strong growth in quick commerce. Since its IPO at Rs 76, Zomato's share price has risen significantly, reaching market cap of Rs 2,03,622 crore—more than tripling from IPO valuation.

The Company Rebranding: Eternal (February 2025)

In February 2025, Zomato announced it renamed the company "Eternal" and unveiled a new logo. Deepinder Goyal stated that the name change applies solely to the company, not its brand or app. The stock ticker switched from ZOMATO to ETERNAL.

This rebranding reflects the company's expansion beyond food delivery to include quick-commerce unit Blinkit, live events business District (acquired Paytm Insider), and kitchen supplies unit Hyperpure. The vision: becoming a multi-vertical consumer tech platform, not just a food delivery app.

Current Operations and Future Plans (2025)

Zomato operates through multiple business units:

Food Delivery: Core business with 58% market share, 800+ cities covered Blinkit (Quick Commerce): Fastest-growing segment, 10-15 minute deliveries, targeting 2,000 dark stores Hyperpure: B2B supply of ingredients and kitchen products to restaurants District: Live events and experiences platform (acquired from Paytm)

The company aims for 30% annual growth in food delivery over the next five years and plans to expand to 1,000 cities by 2025 (up from 500+ in FY24). With the Zomato and McDelivery apps engaging over 3 million monthly active users and 11 million+ downloads, digital engagement remains strong.

The Founder's Journey: Deepinder Goyal Today

In November 2024, Zomato disclosed that Deepinder Goyal had waived his annual salary of Rs 3.5 crore from April 2021 to March 2026—working without compensation to demonstrate commitment during the growth phase.

Deepinder recently joined India's billionaire club following a surge of over 300% in Zomato shares, reaching a net worth exceeding Rs 8,300 crore. He has become India's richest professional manager at age 41.

Beyond business, Deepinder was a shark on Shark Tank India Season 3, bringing Zomato's story to mainstream television and inspiring entrepreneurs.

What Made Zomato Succeed

• Solving Real Problems: Started with genuine pain point—finding restaurant menus—then evolved to solve bigger problems like food delivery convenience.

• Founder Commitment: Deepinder's willingness to work without salary, invest personal savings, and persist through failures demonstrated authentic commitment.

• Strategic Pivots: Shifted from restaurant discovery to food delivery when market demanded it, then expanded to quick commerce.

• Aggressive Expansion: Moved fast domestically and internationally, learning from multiple markets simultaneously.

• Smart Acquisitions: Uber Eats India and Blinkit transformed market position and business model.

• Technology Focus: Invested heavily in logistics technology, AI-driven recommendations, and operational efficiency.

• Market Timing: Caught the wave of smartphone adoption, digital payments, and changing consumer behavior.

Perseverance: Survived near-bankruptcy, intense competition, regulatory challenges, and pandemic disruption.

Challenges Ahead

Despite success, challenges persist. Competition from Swiggy remains intense. Regulatory scrutiny over gig worker rights, commission structures, and food safety continues. Achieving sustainable profitability across all verticals while maintaining growth is delicate. Managing delivery partner welfare amid increasing order volumes requires attention.

The quick commerce expansion with Blinkit requires massive capital investment in dark stores and infrastructure. Maintaining food quality and customer satisfaction at scale across 800+ cities is operationally complex.

The Legacy: Transforming How India Eats

From two analysts frustrated by lunch queues to building a Rs 2 lakh crore empire, Zomato's story embodies the Indian startup dream. It proved that Indian entrepreneurs can build global-scale technology companies, loss-making startups can eventually become profitable, and patient capital combined with execution excellence creates category leaders.

Zomato didn't just build a food delivery app—it changed Indian urban lifestyles. Late-night cravings are now satisfied with a few taps. Cooking fatigue has a solution. Discovering new restaurants became effortless. Small restaurants gained access to customers they couldn't reach before.

Every day, millions of Indians open the Zomato app—some ordering dinner, others discovering weekend restaurants, many satisfying midnight cravings. Behind each order is a story that began with two IIT graduates standing in a cafeteria queue, frustrated about wasted time.

From FoodieBay to Zomato to Eternal—the name changed, but the mission remained: connecting people with food, conveniently, affordably, delightfully.

Because when hunger strikes, India opens Zomato.