Zomato Makes History: First Tech Startup in Sensex 30

Zomato, the food delivery and quick-commerce leader, has created history by becoming the first Indian tech startup to join the BSE Sensex 30, replacing the steel giant JSW Steel. Zomato is now the 28th most valuable company in India. This milestone reflects the rapid transformation of India’s stock market, where new-age companies are challenging traditional industries.

How did this happen? Let’s dive in and find out.

Zomato’s Remarkable Growth

Zomato’s inclusion in the Sensex shows how well it has performed in both its business and the stock market. The company’s stock price surged by an impressive 110% over the past year, significantly outperforming the Sensex’s growth of 10.7% during the same period. As a result, Zomato’s market capitalization has climbed to ?2.65 lakh crore, surpassing JSW Steel, which stands at ?2.25 lakh crore. In the second quarter of FY25, Zomato achieved a revenue of ?4,799 crore, marking a 68% year-on-year increase, and its net profit jumped fivefold, reaching ?176 crore compared to the previous year.

These achievements were driven by Zomato’s strategic improvements in its food delivery and quick commerce services, propelling the company toward long-term profitability.

Strategic Moves That Helped Zomato Grow

The company’s acquisition of Blinkit, formerly known as Grofers, allowed it to expand into fast-delivery services, unlocking new growth opportunities. In 2023, Zomato reintroduced its popular subscription program, Zomato Gold, which incentivized its most loyal customers to order more frequently. Additionally, Zomato raised ?8,500 crore from large investors last month, securing ample funds to support its future growth plans.?

Zomato vs. Swiggy

Zomato’s strong financial performance in Q2 FY25 has set it apart from its competitor, Swiggy. In the recent quarter, Zomato reported a revenue of ?4,799 crore, while Swiggy's revenue for the same period was ?3,601 crore. This indicates healthy competition, although Swiggy is still trailing behind Zomato.

On the profitability front, Zomato achieved a net profit of ?176 crore, showcasing its operational strength, while Swiggy faced a net loss of ?626 crore despite its revenue growth, highlighting its ongoing challenges in achieving profitability.?

What’s Next for Zomato?

The company is expanding its quick commerce business by entering new cities, strengthening operations in existing ones, and targeting underserved Tier-1 cities and smaller towns. It plans to open 1,000 dark stores by March 2025 and 2,000 by December 2026.?

This growth is backed by ?8,500 crore raised through a Qualified Institutional Placement (QIP), which has strengthened its cash reserves and provided the financial support needed for future investments and strategic plans. Zomato's ability to scale operations efficiently while maintaining profitability in the competitive food-tech sector further improves its position as an industry leader.

Conclusion

Zomato joining the Sensex is a major milestone for India’s stock market and economy. It shows how tech companies are becoming important drivers of growth, pushing traditional industries to adapt. As Zomato keeps growing, it sets an example for other startups to do the same, changing the way India’s economy will look in the future.

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