Data dive: What Eternal aka Zomato got right in the last two years

This move is part of a broader transformation as the company strengthens its position in India’s internet economy. Over the past two years, Zomato has transitioned from a private venture to a public-market company, cementing its place in the digital business landscape.

Read this | What’s in a new name? A strategic shift or a cosmetic makeover?

Back in July 2021, when India’s market regulator eased listing rules for new-age internet businesses, Zomato was the first to go public, paving the way for Paytm, Nykaa, and rival Swiggy. Among these, Zomato has emerged as the strongest performer—its stock has tripled from its issue price, and it also holds the highest market capitalization in this set. This success earned Zomato a spot in the 30-share BSE Sensex in December, making it the first internet-first company to be included in the benchmark index.

Yet, the journey has been far from linear. 

In its first year as a public company, Zomato wrestled with the classic challenge of balancing high growth with profitability. Over time, it crafted a strategy that blended its risk-taking culture with public-market discipline, leading to a remarkable turnaround—both operationally and in stock performance.

Buy and build

Soon after listing, Zomato recognized that its core food-delivery business—responsible for 86% of its revenue in FY22—would not deliver the sustained hypergrowth markets expected and was embedding in its value. It needed new engines, which came via two acquisition-led diversifications. In June 2022, it increased its stake in Blinkit (formerly Grofers), betting on quick commerce when the segment was still nascent. Then, in August 2024, it acquired Paytm’s ticketing business, now rebranded as District, to compete with BookMyShow.

Blinkit has since become a key growth driver, dominating nearly 80% of the company’s analyst call in January. Its revenue share has risen from 9.3% in FY23 to 17% in FY24. Meanwhile, Zomato’s B2B supply business has also expanded rapidly, accounting for 23% of total revenue in FY24. Consequently, food delivery’s contribution to revenue declined to 58% in during the period.

Pursue profitability

This reshuffle in revenues is expected to continue. 

In May 2024, Zomato had projected a 20% annual growth for its food delivery business and 60% for quick commerce. The company is in an enviable position—its food delivery business is profitable, generates cash, and requires minimal new investment, allowing surplus capital to be funnelled into Blinkit and other ventures.

While Zomato’s food delivery service operates in 800 cities, Blinkit—potentially a larger business—is present in only 26. At the moment, Blinkit’s focus is on a denser presence in India’s top eight cities, which means setting up more dark stores or optimising them, for a 15-minute delivery. Such has been the external traction and internal execution that Blinkit has already hit its March 2025 target of 1,000 dark stores. At a company level, it’s also become profitable at the net level in 2023-24, an objective that many Internet businesses have struggled to achieve.

New peaks

Arch-rival Swiggy, which went public in November 2024, has found profitability elusive. In fact, it was Swiggy that took the lead in adding quick commerce to food delivery. And while Swiggy has carved out a significant presence in both those businesses, it trails Zomato on most metrics, including size, customer and servicing base, and cash.

Read this | Swiggy Instamart picks up pace but still lags Zomato’s Blinkit

In the context of growth, Zomato’s approach has been to look for business adjacencies. For example, like food delivery, quick commerce is oriented around delivery. 

Also read | Zomato’s losing steam and the Blinkit drag

Blinkit gives Zomato a good growth runway for a few years at least. It’s also in that stage where Zomato needs to invest in it. In case Zomato wants to take on more, funds should not be an issue. As of December 2024, its cash reserves stood at ₹19,235 crore, bolstered by the ₹8,446 crore raised around Swiggy’s IPO.

With a bold vision and ample capital, Zomato is poised for its next phase of expansion—one that could define its ‘Eternal’ legacy.

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