Indian startup Zomato made headlines everywhere as its shares spiked in its stock market debut on July 23.
Formerly called Foodibey, the food delivery app, is founded by Deepinder Goyal in 2008. Ahead of Zomato’s IPO, its founder Goyal said that the future looks exciting for the company.
"Our 10+ year journey has not always been smooth. We have lived through many ups and downs–something not every company has the privilege of living long enough to do. I have made many decisions which have been good for the company, while some have caused our stakeholders a lot of heartburn," 38-year-old Goyal said, in a blog. "That said, we have found ourselves managing times of crisis on different occasions in much the same way – impatiently staying focused on the long term, executing relentlessly, and committing ourselves to doing the very best we can do today."
Zomato's popularity kept growing as India's digital population grew. With a population of 1.3 billion, India has more than 625 million internet users, which is why big companies like Uber (UBER) - Get Uber Technologies, Inc. Report, Netflix (NFLX,) - Get Netflix, Inc. (NFLX) Report and Amazon (AMZN) - Get Amazon.com, Inc. Report are investing there.
Seeing the company's growth, Jack Ma’s Ant Group has backed the venture since 2018, and Uber Eats sold its Indian division to Zomato as it could not withstand the fierce competition. Launched in India in 2017, Uber Eats was forced to sell itself to Zomato in 2020.
Zomato and another food delivery app Swiggy, which is backed by another Chinese company Tencent are the two most popular food delivering companies in India.
Morgan Stanley (MS) - Get Morgan Stanley (MS) Report, Tiger Global, and Fidelity Investments (FRESX) - Get Fidelity Real Estate Investment Report are some of the big names backing Zomato, whose current valuation is about $12.2 billion.