Ordering food online is a new trend these days. It not only provides a great customer experience but it also increases the business of various food outlets. Nowadays there are many online food ordering apps.
The text below provides insights into the Zomato Business Model, one of the leading online food processing and ordering apps in India.
ZOMATO BUSINESS MODEL: THE BEGINNING
Deepinder Goyal and Pankaj Chaddah two IIT Delhi alumnus in 2008 started a food review website named Foodiebay. Later in 2010 they renamed their startup from Foodiebay to Zomato and added more functionalities to their website. Currently, Zomato is operating in 24 countries. It gives information related to restaurants near you, their food menu, and public reviews.
- Zomato provided customers with a Mobile App based on Restaurant and Food business.
- Monthly traffic on Zomato is more than 90 million users. People usually search for restaurants to dine in or home delivery of the food from outlets near them. This makes Zomato a highly targeted place for restaurants or food outlets to advertise themselves.
- The main revenue source for Zomato is to charge restaurants and food outlets for advertising on the Zomato website and app.
- Zomato also launched a food ordering feature on their website and app which can be used to order food from nearby restaurants.
- Zomato is currently operating in 24 countries with over 5000+ employees and a vision of building outstanding dining and delivery experience.
These are some competitors of Zomato:
- Just Eat
- Inner Chef
- Food Panda
ZOMATO BUSINESS MODEL FUNDING
- Zomato raised around $16.7 Million from an IT company named InfoEdge in 2010-2013.
- Then in 2013 InfoEdge and Sequoia Capital invested $37 Million.
- In 2014 Zomato got another round 0f funding from InfoEdge, Sequoia Capital, and Vy Capital of around $50 Million.
- In 2018 Zomato again raised $210 Million from Alibaba’s payment affiliate Ant Financial. In addition, it raised $180 Million again in 2018 from Ant Financial.
- In 2020 Zomato raised $62 Million from a company named Temasek.
- Again in 2020, the company raised $52 Million from a US-based Investment Company named Kora.