 "$35 million to $29 billion: How Deepinder Goyal built the Zomato empire")
Zomato’s co-founder and CEO, Deepinder Goyal, recently opened up about the company’s transformative journey from a $7.6 billion Initial Public Offering (IPO) debut to its remarkable $29 billion market valuation. Speaking at the Economic Times Startup Awards, Goyal shared insights into Zomato’s 15-year journey, pivotal decisions, and the challenges ahead. Here are the highlights from his conversation:
‘Bengaluru isn’t the only place to build startups’
Goyal emphasised that businesses can thrive anywhere, challenging Bengaluru’s status as India’s startup hub. “You don’t need to come to Bengaluru to build a startup!” he said, highlighting how remote technologies are levelling the playing field for entrepreneurs across the country.
Zomato’s Journey: From good to great
Reflecting on Zomato’s evolution, Goyal revisited his 2022 commitment to turn the company from ‘good’ to ‘great’. Two years on, he admitted to internal struggles that temporarily hindered progress. “The IPO was good, the business was thriving, and people were making money for the first time in their lives. But complacency set in. We had talented people who didn’t even realise they had lost their drive. There was no real work happening for a while, and I had to clear out many to reboot the organisation,” he said.
Today, Goyal’s focus is on fostering a high-trust, high-efficiency team.
Personal lows trump business crises
Surprisingly, Goyal cited personal betrayals, not financial challenges, as his lowest moments as a founder. “My biggest lows happen when people I trust don’t show up,” he confessed, adding that the emotional toll of such incidents can be harder to overcome than business setbacks.
The Swiggy challenge: A battle for survival
Goyal further acknowledged 2018 as one of Zomato’s toughest years, when rival Swiggy raised $1 billion while Zomato had just $35 million in the bank. “That was bad,” he admitted, pointing to the fierce competition between the two food delivery giants.
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The birth of Zomato’s food delivery
Interestingly, Goyal revealed that Zomato’s entry into the food delivery space was not a strategic move but a survival tactic. “If we hadn’t done it, we wouldn’t be here,” he said. Asscquiring the last-mile delivery service Runnr and later quick commerce platform Blinkit, were key to Zomato’s growths. Goyal believes mastering Blinkit’s challenges is essential for Zomato’s future. “If we don’t get Blinkit right, we’ll be done in 10 years,” he warned.
Quick commerce’s real target: E-commerce giants
Contrary to the popular belief that platforms like Blinkit are hurting traditional kirana (local) stores, Goyal pointed out that it is actually disrupting larger e-commerce players. “Blinkit is eating into the market share of giants like Amazon and Flipkart in urban areas, not local shops,” he explained.
Zomato’s new venture: Introducing ‘District’
Goyal also announced plans for a new app called ‘District’, which will integrate Zomato’s dining out and event offerings. “We’re spinning off the dining out and event business into a separate app with features like ticketing, concerts, staycations, and more,” he said. This strategic move will allow Zomato to sharpen its focus on its core businesses: food delivery, quick commerce, HyperPure, and dining out.
Diversification with caution
While discussing Zomato’s expansion into new sectors, Goyal humbly downplayed concerns that the company posed a threat to incumbents like BookMyShow. “We’re actually scared of everyone else. BookMyShow is 20 times our size. There’s no reason for them to worry about us,” he said.
IPO reflections: Goyal’s advice for startups
Reflecting on Zomato’s successful IPO in 2021, Goyal advised startups not to get swept up in market hype. “Many companies are going public because the market is hot, but they may not be ready. Once you go public, there’s no room for error. You must be transparent about everything,” he said, urging new-age startups to think of IPOs as part of a long-term strategy rather than a quick win.
Swiggy sponsorship: A Shark Tank twist
In a lighter moment, Goyal shared his experience as a guest on Shark Tank India. He intended to set a more realistic narrative for aspiring entrepreneurs, but due to Swiggy’s sponsorship of the show this season, Goyal won’t be returning. “I unfortunately can't go back because Swiggy sponsored Shark Tank this time and kicked me out… That’s what I heard – that they said this is the sponsorship and Deepinder Goyal can’t be on the show,” he said.
Looking ahead: Zomato’s future
As for Swiggy’s upcoming IPO, Goyal admitted, “I genuinely don’t know, and we don’t even think about it. What’s the point of worrying about what you can’t control? Better get an extra hour of sleep,” he quipped.