One of the startups that grew in a short period and understood the needs of their customers is Zomato. Personally, I admire their marketing efforts they are very relatable, and quirky.
Let’s get to know Zomato’s success story which made them the market leader that they are now! They have revolutionized the on-demand food delivery industry with customer resonance and satisfaction.
In this article, you’ll get to know their journey, their acquisitions, the details about their Initial public offering (IPO), and my personal favourite - their marketing strategies.
Let’s get going!
How did Zomato Start its Venture?
They came up with this idea while waiting in a queue during their lunch break to order their food.
Deepinder and Pankaj started a prologue version of Zomato calling it FOODIEBAY in the office of Bain & Company in Delhi.
They launched as a private limited company and designed a website, uploading the scanned copy of the food menu from the food court.
Analyzing the traffic of their website - foodiebay.com, they realized that they hit a jackpot, and the services were extended to Delhi-NCR, then Mumbai, Kolkata and Bangalore (the metropolitan cities).
In November 2010, they expanded their services to PAN India and changed the name to Zomato, and launched a mobile app in the same month and year.
How did They Acquire their Funding?
In December 2010, Sanjeev Bikhchandani, the founder of Naukri.com gave $1 million USD through his company Info Edge India to Zomato and that’s how the journey began.
In 2012, Zomato expanded its horizons in Sri Lanka, Dubai, New Zealand, South Africa, UK, and Turkey. They also extended their services to various cities in India.
Then again in 2013 Zomato received $10 million USD from Info Edge India.
In 2020, Zomato got $660 million to expand further which made them a billion-dollar startup.
Recently on July 14th, 2021, they released IPO (Initial public offering) to the public and the basis of allotment was closed on July 22nd, 2021.
Why is Zomato Successful?
Let’s get to know the 5 reasons how Zomato made it to the top of the corporate chain of authority and power!
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They had the first-entrant advantage in the Indian market. When people were so used to dining in or get a takeaway, this new online ordering system made the process more convenient.
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They had and have a robust business model. In 2015-16 Zomato was facing losses, so they expanded their revenue-generating portal by advertising/ promoting listed restaurants, Zomato Kitchen, subscription program, Zomato Gold, and more.
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Deepinder Goyal, the CEO of Zomato has always taken pride in the caliber of his employees. He used to address them as his team rather than employees in the interviews. It created a strong work culture on the grounds of Zomato.
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Their strengths include having a constant eye over the competitors. When Swiggy came to power, Zomato gave out crazy offers and value to their customers to retain them. And guess what? It worked.
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The continuous inflow of funds is also a plus for Zomato. Investors were very curious and equally interested in being a part of Zomato and its profit. They didn’t hesitate to invest in such a growing project - an on-demand food delivery business.
Interesting Marketing Strategies of Zomato
Nowadays, Zomato is popular for its social media engagement with its witty Twitter comments section and quirky tweets with other brands.
Kudos to the copy team! They are making their workplace more fun by sending their users amazing notifications which makes them a favorite food delivery portal.
When Pokemon Go! was launched, they made this exciting social media post following the minimalism concept.
And check out some of their super relatable and real-time social media minimalist messages!
This is when the newly elected President of the USA Donald Trump decided to build a wall separating Mexico!
Get another eccentric treat!
Image source: iide-casestudies
If this doesn’t make you love them, then what does?
End note
Zomato's journey from a simple food menu aggregator to a global leader in the food delivery industry highlights the power of innovation, smart growth strategies, and strong customer connections.
Their ability to adapt, attract investment, and engage customers with clever marketing has firmly established them at the top.
As Zomato continues to grow and evolve, their story serves as a great example for startups looking to make their mark and truly connect with their audience. It's a perfect mix of timing, strategy, and understanding what customers really want.