Zomato, a 12-year-old start-up founded by Deepinder Goyal that started out as a weekend project during the days of university, is now heading for an IPO. Announcing $100 million in new funding from Tiger Global on Thursday, even as companies continue to be hit by the coronavirus, Zomato is now looking to raise $600 million before the public issue kicks off in 2021.
Right before its opening public, Zomato also appears to close a $30 million share sale for its former employees, which is expected to be one of the biggest ESOP liquidity events in India. Here’s a look at how far Zomato has come since the days when its founder launched the idea.
“It was towards the end of my five years at IIT that I ordered a Domino’s pizza and at that point you had to call for placing an order. So while I was in college I started a food ordering business, but it didn’t work. It was too early, ”Zomato co-founder Deepinder Goyal said in a live Twitter chat in July. However, Deepinder Goyal later gave up on the idea of joining the corporate world. While at Bain and Co, he realized there was a need in the market for a food listing platform. What started out as a weekend project has grown into the online food ordering giant we know now.
Over the next 12 years, Foodiebay, which was the initial company name, was renamed Zomato; and in 2010, raised angel investments. Two years later, in 2012, Zomato went international with a debut in the United Arab Emirates market. In 2015, Zomato launched food delivery and in January 2020 it acquired UberEats.
This, along with many other milestones along the way, resulted in a startup, currently worth $3 billion with a presence in 24 countries. In fiscal 2020, Zomato doubled its revenue to $394 million. As the coronavirus has affected his business, founder Deepinder Goyal is convinced it is simply a “problem” on the company’s path in the next 100 years.