Zomato, the popular food delivery company led by Deepinder Goyal, has made history by becoming the first Indian startup to be included in the Bombay Stock Exchange’s (BSE) Sensex 30. This move, which took effect on December 23, 2024, replaces JSW Steel Ltd in the prestigious index that tracks the performance of India’s top 30 companies.
This inclusion is a significant achievement for Zomato and a major milestone for India’s financial market. It reflects the growing importance of tech-driven companies alongside traditional industries like steel and manufacturing.
Zomato’s Impact on Market
The inclusion of Zomato in the Sensex 30 is expected to bring considerable investment into the company. It is estimated that Zomato will see an inflow of approximately $513 million (Rs 4,362.35 crore) due to its entry into the index. On the other hand, JSW Steel is expected to face outflows of around $252 million (Rs 2,142.91 crore) as it is replaced by Zomato.
This shift is seen as a sign of changing trends in India’s stock market, where tech-based startups like Zomato are gaining more recognition and investor interest. It also highlights the growing influence of the tech sector in India’s economy.
Before its inclusion in the Sensex, Zomato’s stock had already been performing well. Over the past six months, the company’s share price increased by around 38% to 43%. This surge has been impressive, especially when compared to the previous year, where the company saw a remarkable gain of 114% to 126%.
As of December 23, 2024, Zomato’s market capitalization stands at approximately Rs 2.64 lakh crore, reflecting its strong position in the market. The company’s stock performance has attracted attention from investors, who are keen to see how it will perform in the future.
Financial Performance of Zomato
Zomato’s strong financial performance further supports its position as a leading player in the food-tech industry. In the second quarter of the current fiscal year, Zomato reported impressive revenue figures. The company’s revenue from operations reached Rs 4,799 crore, a 68.5% increase compared to the previous quarter, when it was Rs 2,848 crore.
Even more impressive is Zomato’s net profit, which rose to Rs 176 crore, marking a 4.8 times increase compared to the same period last year. This growth in both revenue and profit shows that Zomato is not only expanding its market share but also becoming more profitable.
Zomato’s success is even more notable when compared to its main rival, Swiggy. While Zomato posted a net profit of Rs 176 crore, Swiggy reported a net loss of Rs 625 crore during the same period. Swiggy’s revenue for the second quarter was Rs 3,601 crore, but its losses show the challenges the company faces in becoming profitable.
Zomato’s ability to turn a profit while competing with Swiggy shows its strong market position and efficient business model. This also highlights the growing dominance of Zomato in the Indian food delivery market.
Zomato’s Recent Fundraising
In addition to its strong financial performance, Zomato recently raised a significant amount of capital through a qualified institutional placement (QIP). The company raised Rs 8,500 crore (over $1 billion), marking its first major fundraising effort since its initial public offering (IPO) in 2021.
Through the QIP, Zomato allocated 33.65 crore equity shares at a price of Rs 252.62 per share. This fundraising will help Zomato further strengthen its position in the market and support its growth plans in the future.
With its inclusion in the Sensex 30, Zomato is expected to continue its upward trajectory. The company’s strong stock performance, financial results, and successful fundraising efforts indicate that it is well-positioned for future growth.
As the first Indian startup to join the Sensex 30, Zomato’s success is a testament to the potential of tech-driven companies in India. The food delivery giant is not only dominating the Indian market but also attracting global attention from investors and analysts.
