Zomato

Zomato logo

Zomato is a fast-growing restaurant discovery website, established in 2008. It provides information related to nearby restaurants and provides facilities such as online ordering, table reservations, and management. It gives the restaurant's owners a platform to serve a large number of users a good quality of food.

Quick Fact

Summary

  • Ranked #2,719th worldwide
  • Active users 11 M
  • Type Review networks
  • Launched date Jul 2008
  • Employees 5,000
  • Headquarters Gurgaon, Haryana, India
  • Parent company Info Edge (2008 - present)

Founders

person
Deepinder Goyal Delhi
person
PankajChaddah

Networks

  • Brand value In 2020 $2 B
  • Revenue in 2020 $350 M
  • Net loss In 2020 $340 M

Data Graphs

personvia Statista.com

Current Controversies

Current ControversiesTweets from Amit Shukla (@amits).

(via twitter.com)

In Jul 2019, Zomato received a customer complaint that he was assigned a non-Hindu delivery boy for his food order in Jabalpur and had asked Zomato to provide a Hindu delivery boy.

The customer alleged that Zomato had refused to change the rider after which he asked to cancel the order. The customer then posted this incident on Twitter, after which Zomato responded to the message stating: "Food doesn't have a religion. It is a religion."

On 17 Aug 2019, more than 1,200 restaurants logged off from Zomato because of their offer of discount programs at dine-in restaurants.

However, Zomato founder Goyal admitted the mistake, became ready to rectify it, and called for sanity and truce. He also urged restaurants to stop the #Logout campaign.

Security Breaches

Security Breaches17M Zomato emails and passwords for sale

on the Dark Web. (via Appknox )

On 4 Jun 2015, an Indian security researcher hacked the Zomato website and gained access to information about 62.5M users.

Using the vulnerability, he was able to access the personal data of users such as telephone numbers, email addresses, and Instagram private photos using their Instagram access token. Zomato fixed the issue within 48 hours of it becoming apparent.

On 18 May 2017, a security blog called Hack read claimed over 17M accounts had been breached.

"The database includes emails and password hashes of Zomato users, while the price was set for the whole package is $1001 (Rs 65,000). The vendor also shared a trove of sample data to prove it is legit", Hackread's post said.

Hacked claimed details of 17M users had meanwhile been sold on the Dark Web.

Original Idea

original ideaoriginal idea

Zomato, which started as Foodiebay in 2008, and was renamed Zomato on 18 Jan 2010 as Zomato Media Pvt. Ltd, by two IIT Delhi alumni, Deepinder Goyal, and Pankaj Chaddah.

The idea struck Deepinder when his colleagues consistently had a demand for paper menu leaflets of different restaurants, to order food.

That's when he thought of converting these restaurant paper menus into a digital app that is far more accessible and easier to use.

Brief History

2008
Jul Zomato, which started as Foodiebay, was founded.
2010
Jan Was renamed Zomato, as Zomato Media Pvt. Ltd.
2011

Expanded across India to Delhi NCR, Mumbai, Bangalore, Chennai, Pune, and Kolkata.

Launched “zomato.xxx”, a site dedicated to Food porn.

2012

Expanded operations internationally including the United Arab Emirates, Sri Lanka, Qatar, the United Kingdom, the Philippines, and South Africa.

May Launched a print version of the website named "Citibank Zomato Restaurant Guide," in collaboration with Citibank.
2013

Zomato was launched in New Zealand, Turkey, Brazil, and Indonesia.

Raised approximately US$16.7M by Info Edge India.

Nov Raised an additional US$37M by Sequoia Capital and Info Edge India.
2014
Apr Launched services in Portugal.
Jul Buying Menu-mania for an undisclosed sum.
Aug Acquisitions including lunchtime.cz and obedovat.sk for a combined US$3.25M.
Sep Acquired Poland-based restaurant search service Gastronauci for an undisclosed sum.
Nov Another round of funding of US$60M at a post-money valuation of US$660M by Info Edge India and Vy Capital, and Sequoia Capital.
Dec Acquired Italian restaurant search service Cibando.
2015

Launched in Canada, Lebanon, and Ireland.

Jan Acquired Urbanspoon, for an estimated $60M.
Apr Acquired MapleGraph Solutions Private Limited, and Nextable in an all-cash deal.

Round of funding of US$50M by Info Edge India, Vy Capital, and Sequoia Capital.

Jun An Indian security researcher hacked the Zomato website and gained access to information about 62.5M users.
Sep Another round of funding of US$60M by Temasek, and Vy Capital.
May Zomato changed business strategies from a Full-Stack market to an Enterprise market.
2016
Sep Zomato changed business strategies from a Full-Stack market to an Enterprise market.
2017
Feb Announced plans to launch Zomato Infrastructure services.
Sep Zomato claimed the company had "turned profitable" in all 24 countries.

Introduced a "zero-commission model" for partner restaurants.

Acquired Runnr.

Dec Zomato stopped accepting updates from its active users.
2018

Raised $150M from Alibaba's payment affiliate Ant Financial.

Sep Acquired TongueStun Food, for about $18M in a cash and stock deal.
Oct Raised $210M from Ant Financial.
Dec Acquired TechEagle Innovations, for an undisclosed amount.
2019

17M Zomato emails and passwords for sale on the Dark Web for a mere $1001 (Rs. 65,000).

Acquired Seattle-based food portal Urbanspoon, for $60M (Rs 370 crore).

Sep Zomato fired almost 10% of its workforce (540 people).
2020
Apr Launched Zomato Market in 80+ cities across India.

Introducing Contactless Dining.

May Zomato further laid off 520 employees.
Aug Zomat allows female employees to take up to 10 days off per year.
Sep Raised $62M from Temasek.
Oct Raised $52M from Kora, a US-based Investment firm.
2021
Feb Raised US$250M from five investors, including Tiger Global Management, at a valuation of US$5.4B.
Jun Signed a deal with Grofers to invest nearly $120M in the online grocery firm by acquiring 9.3% stakes of the company.

Network Features

Table booking is one of the most significant features which is required to build a successful restaurant business. The user can easily book tables whenever they want. Table booking provides convenience to the user as well as prevents disappointment. Most of the restaurants allow table booking from 2-8 persons.

Table booking
																Table booking. (via zomato.com)

Follow your friends

Everyone loves to eat their favorite food. Zomato provides an option for foodies to follow their friends so that they can know what their friends eat and what they like. They can also discover more from the places nearby.

Self PickUp

You can enjoy offers and promos as well as no need to wait for your delivery. Zomato provides you with a feature that you can order your food online and pick it up from the restaurant by yourself.

This option saves your time as well as you can have your food on the go.

Exploring food places nearby

Users can explore nearby restaurants, view restaurant pictures along with the location.

Promotions

Promotions
																Zomato coupons. (via grabon.in)

Zomato continually engages in the promotion of various restaurants. Partners get higher exposure and visibility via banner promotions, and they are charged by Zomato for the same.

A Spoonback is an automatic link from a Zomato restaurant page to your blog post. You review the restaurant on your blog, and we'll link to your post. The link appears in a special Blogs section on each Zomato restaurant page, city feed, your Food Journey, your profile page, and your followers' feeds.

Zomato Gold: This is a freemium model-based idea. The concept aims at providing premium services to subscribers. This system helps the customer in enjoying complimentary food and beverage services offered if they have gold memberships.

Zomato Originals

Zomato has recently rolled out a new video streaming service known as Zomato Originals which will feature 18 new and exclusive shows along with 2000+ videos like sneak peeks, recipes, comedy and celebrity interviews, etc.

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