16 years ago, Zomato was just an idea in the heads of two Bain employees in Gurgaon, but now it’s become the 41st most valuable company in India.
Zomato is now India’s 41st most valuable listed company after a 12 percent surge in its stock price following stellar Q1FY25 numbers. Zomato currently commands a market capitalization of Rs. 2.31 lakh crore, ahead of decades-old companies like Tata Steel, GAIL, Tech Mahindra and others. It is also the most valuable tech startup in India with a valuation of $29 billion.
Zomato move up the rankings came after it reported a solid set of numbers for the previous quarter. Zomato’s profit rose from Rs. 2 crore in the June quarter last year to Rs. 253 crore this year, which represented a more than 200x increase year-on-year. Zomato also grew its revenue significantly, thanks largely to a near-doubling of its revenue from its hyperlocal delivery arm, Blinkit.
The stock markets today enthusiastically rewarded the company for its financial performance. Zomato’s stock opened up nearly 10 percent, but rose to as much as 18 percent up at Rs. 273 per share around 10 am. It ended the day at Rs. 262 a share, up a smart 12 percent from its closing price the day prior.
This means that Zomato is now more valuable than some of the biggest names in India’s listed space. Zomato’s market capitalization is Rs. 2.31 lakh crore, ahead of industrial names like JSW Steel (Rs. 2.19 lakh crore), DLF (Rs. 2.09 lakh crore), Tata Steel (1.97 lakh crore), Vedanta (Rs. 1.69 lakh crore) and GAIL (Rs. 1.55 lakh crore). It is also ahead of consumer brands like Indigo (Rs. 1.66 lakh crore), Tata Trent (1.97 lakh crore), Britannia (Rs. 1.38 lakh crore), Godrej Consumer (Rs. 1.49 lakh crore) and Dabur (Rs. 1.11 lakh crore). Zomato is also worth more than pharma companies like Divi’s Labs (Rs. 1.32 lakh crore), Zydus (Rs. 1.25 lakh crore), Cipla (Rs. 1.23 lakh crore), Dr Reddy’s Labs (Rs. 1.16 lakh crore) and Torrent Pharma (Rs. 1.08 lakh crore). And Zomato is also more valuable than banks like Punjab National Bank (Rs. 1.32 lakh crore), Bank of Baroda (Rs. 1.26 lakh crore) and IndusInd Bank (Rs. 1.09 lakh crore).
This is quite impressive for a company that had started off by scanning restaurant menus — Zomato had initially sought to put restaurant menus on the internet so that people in Gurgaon could order food on the phone more easily. From there, it graduated to becoming a restaurant ratings and review platform, and in 2015 began delivering food to customers. By 2018, Zomato had launched Hyperpure, which delivered ingredients to restaurants, and in 2022, acquired Blinkit, which was a hyperlocal grocery delivery service. Zomato has now announced a new app named District, which will be its going-out service catering to urban consumers. And with Zomato having ending up dominating many of the verticals it’s entered, and looking to enter still more, Zomato’s move towards the top of the list of India’s most valuable companies might just be getting started.