In 2010 Zomato was launched as a website with information about restaurants, menus, reviews, ratings and more. Since then, the company has grown rapidly, adding food delivery, table reservations and payment options to its services. Today, with over 70 million monthly orders, Zomato is one of the most popular food-ordering app in India and many other countries. Let’s take a look at Zomato Startup story.
How Zomato started its journey?
It all started when the company’s co-founders Deepinder Goyal and Pankaj Chaddah noticed large numbers of people waiting in long lines at their New Delhi office just to get a glimpse of the menu. And at that moment, the thought of finding a solution hit the duo and inspired them to launch Zomato, formerly known as ‘Foodiebay’.
A digital copy of the menu card was published on the website. Then everyone in the office started using it and it saved a lot of time. This increased traffic to the website and quickly expanded to make it available to all residents of the city.
What made Zomato so successful?
Let’s take a look at the reasons why Zomato has risen to the top.
1. They had a first-mover advantage in the Indian market. This new online ordering system has simplified the process for those used to ordering eat-in or takeout.
2. They had and still have a strong business model. As Zomato recorded losses in 2015-2016, it expanded its revenue-generating portal by promoting listed restaurants, Zomato Kitchen, subscription services, Zomato Gold, etc.
3. Zomato CEO Deepinder Goyal has always been proud of his employees. In interviews, he referred to them as a team rather than employees. It has fostered a strong work culture on the Zomato campus.
4. One of strength is ability to keep an eye on the competition at all times. When Swiggy took over, Zomato offered crazy deals and value to keep customers. And guess what? Succeeded.
5. Zomato benefited from steady inflows of funds. Investors were very interested in Zomato and its earnings. They had no hesitation in investing in their rapidly expanding on-demand food delivery project.
Who funded Zomato initially?
Deepinder Goyal and Pankaj Chaddah founded Zomato. Before teaming up to launch Zomato, the two IIT graduates were employed at Bain & Co. in New Delhi.
What is Zomato strategy?
Visual advertising:
Zomato’s graphic ads are attractive. Since its launch, the company has created some of the best graphic ads. Whether it’s billboards or video ads, Zomato always comes up with the best ideas and ranks them higher.
Display Ads:
Zomato uses a graphic advertising approach as it allows food tech start-ups to market themselves in a variety of ways including image, audio and video.
Email and SMS marketing strategy
Zomato knows a thing or two about email marketing strategies. It uses one of the smartest and most powerful email marketing techniques. Effective subject lines and clear calls to action are essential to keeping customers trusting your online grocery delivery platform.
Along with email, Zomato established the standard in SMS marketing. Display engaging content based on your customers’ buying habits. This technology will also help advance food technology.
Paid advertising strategy
Paid advertising is crucial and helps to maintain engagement on the platform even though it is a temporary marketing strategy. Furthermore, it dramatically increases organic traffic to the mobile app or website and enhances search outcomes.
Zomato only uses Google ads to target specific customers. The food tech juggernaut can discover a wide variety of ads keywords, that appear alongside organic search results.
Search Ads:
This is a type of search engine advertising that allows online advertisements to be placed on websites and the results of search engine queries to appear in those advertisements. This technique is used in Zomato’s digital marketing strategy to improve its online presence.
Related social media memes:
Zomato is a well-known brand on social media, known not only for its products, but also for the amazing content they create to engage with its sizeable customer base. A company use memes to make fun of itself in addition to external topics.
Twitter account is full of fun content that ultimately sets the brand’s offerings apart.
Zomato recognizes that food cravings are real. This creates humorous content that encourages viewers to buy groceries.
Influencer marketing strategy:
Zomato has highly emphasized influencer marketing in its advertising campaigns because it recognizes its power. Zomato never hesitates to use its popularity to grow its user base, whether macro or micro-influencers.
YouTube Marketing:
Zomato has always been a pioneer in recognizing the value of videos and using them to their advantage on the YouTube platform. On YouTube, you’ll often see Zomato’s short, crisp, non-skippable video ads, but the ‘call to action’ is modest.
Therefore, it is no exaggeration to say that video advertising plays an important role in Zomato’s digital marketing strategy.
What is the main objective of Zomato?
Objectives of Zomato:
- To raise funds and revenue
- To reach customers all over the world
- To expand constantly and boost website and customer traffic
- Global mobile app
- Being the market’s largest resource for food supplies
- Simplified rating and review process
Why is Zomato so highly valued?
There’s a reason Zomato is one of the world’s most valuable companies. It has completely changed the way we order food by giving you an easy-to-use platform that allows you to order from your favorite restaurants without leaving the comfort of your home. They provide comfort in addition to various factors such as deliciousness, cost, and delivery time.
Zomato’s success is a result of its creative approach to food delivery, commitment to excellent customer service, and ability to outperform its competitors. Zomato is popular with many customers around the world due to its simple interface and reliable service.
Who is the biggest investor in Zomato?
Given the tremendous popularity of the app, Zomato developers decided to create a mobile app to streamline its use. Zomato’s mobile app was developed to help people and make it easier to use. But funding for innovation was higher.
Zomato caught the interest of Sanjeev Bikhchandani and started funding the business. He invested up to US$ 1 million in 2010 through Info Edge (India). The following year, the same investor offered $3.5 million. In 2016 Info Edge invested $10 million in the company. Info Edge now owns the overwhelming majority.
The company’s other investors include Sequoia Capital, VY Capital and Temasek.
What makes Zomato different from others?
| Zomato | Other Food Delivery Company |
|---|---|
| Customers can use Zomato’s information directory, to find local restaurants and eateries | Advertising, commissions, and delivery fees make up the three main revenue streams |
| The Zomato app’s extensive features include seat reservations, location tracking, nearby places, and more | Has basic features like easy access and food delivery |
| Device location tracker must be enabled. With geolocation enabled, however, Zomato’s auto-detection system is impressive | Works faster without asking for location tracking permissions |
| Zomato remembers and uses your previous payment methods, giving you a faster and easier way to pay | Payment options are always displayed, even if you have placed multiple orders |
| Zomato usually delivers food slowly | Delivery is a little faster than Zomato |
| Zomato offers users more cashback and offers | Fewer offers and cashback |
Wrapping Up
Zomato offers a variety of services such as online ordering, table reservations, cashless payments, loyalty programs and more. Zomato is revolutionizing the food delivery industry with its commitment to customer satisfaction and continuous innovation.
In conclusion, the Zomato startup story is an inspiring example of how a small idea can transform into a leading global food-tech company. With a clear vision, innovative strategies, and a customer-centric approach, Zomato has disrupted the food industry and paved the way for new possibilities in the digital age.