Is Zomato Bigger Than Tata Now? A Milestone for Indian Startups

What happens when a six-year-old tech startup outpaces legacy giants in market valuation? The Indian stock market witnesses a shift that underscores the growing dominance of digital-first companies.

In a remarkable turn of events, Zomato, the food delivery aggregator synonymous with India’s digital revolution, has surpassed the market capitalisation of automobile stalwart Tata Motors and two-wheeler giant Bajaj Auto. This achievement comes just ahead of Zomato’s inclusion in the Bombay Stock Exchange’s Sensex, the premier index tracking India’s top 30 companies.

So can we say that Zomato is bigger than Tata now? Let's find out with TICE.

Zomato’s market cap has surged a staggering 162% year-to-date, hitting Rs 2.83 lakh crore. This leap has propelled it past Tata Motors, valued at Rs 2.79 lakh crore, and Bajaj Auto, which stands at Rs 2.5 lakh crore. From being a disruptor in the food delivery space to becoming a heavyweight in the stock market, Zomato’s meteoric rise is rewriting the rules of the game for Indian startups.

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Zomato’s Entry into the Sensex

Zomato’s inclusion in the Sensex, effective December 20, marks a significant milestone. The company is set to replace JSW Steel, a traditional powerhouse with a market cap of Rs 2.31 lakh crore. This reconstitution highlights a pivotal moment for India’s stock market, as a new-age tech company takes its place among the country’s most established and financially robust businesses.

The Sensex—a barometer of India’s economic health—comprises 30 large companies across key sectors. Zomato’s addition is a testament to how the Indian market is evolving to embrace scalability, innovation, and the digital-first approach.

According to Nuvama Alternative & Quantitative Research, Zomato’s Sensex inclusion will bring an estimated inflow of $513 million (around Rs 4,356 crore) as global investors adjust their portfolios to align with the index.

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The Numbers Behind the Surge

Zomato’s stock has rallied over 136% this year alone. Analysts remain bullish, with Morgan Stanley forecasting a potential 75% upside in a bullish scenario, pegging the stock at Rs 510 apiece over the next year. The company’s strong fundamentals, superior unit economics, and a well-capitalised balance sheet have made it a darling of the market.

Its quick-commerce arm, Blinkit, has also captured significant attention. Despite rising competition, Morgan Stanley estimates that Blinkit’s market share will remain above 40%, thanks to its strong consumer positioning.

As of now, 24 out of 26 analysts tracking Zomato have given it a ‘buy’ rating, showcasing a broad consensus about its growth trajectory.

Zomato: A Tale of Market Evolution

What makes this achievement even more striking is the context. Tata Motors, with a revenue base nearly four times that of Zomato, has been a symbol of industrial and automotive excellence. Yet, in a market increasingly valuing scalability and innovation, Zomato’s digital-first approach has made it the 27th largest company in India by market cap.

Zomato’s rise isn’t just about numbers; it’s about a larger shift in market dynamics. The Indian stock market is acknowledging the importance of tech-driven platforms that resonate with millennial and Gen Z consumers. From ordering food to managing logistics through Blinkit, Zomato has ingrained itself into the daily lives of millions.

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The Bigger Picture for Startups

For Zomato’s founder and CEO, Deepinder Goyal, this journey underscores the potential of Indian startups to challenge legacy sectors. In just six years, Zomato has gone from being a promising unicorn to a Sensex constituent. This milestone is a beacon of hope for other startups aiming to scale and make a mark in traditional markets.

As the first new-age tech stock to replace a steelmaker in the Sensex, Zomato is not just breaking records but also reshaping narratives. It represents a momentous occasion for the Indian startup ecosystem, where scalability and innovation are proving to be as valuable as decades of industrial legacy.

What Lies Ahead

Zomato’s journey is a testament to the resilience and ambition of Indian startups. With its inclusion in the Sensex, the company is poised for even greater visibility and investor interest. This moment also signals a broader trend—the rise of startups in a market long dominated by traditional businesses.

For the Indian stock market, Zomato’s success is a reflection of an evolving landscape, one where new-age companies are increasingly taking center stage. As Deepinder Goyal and his team gear up for this new chapter, the eyes of the industry and investors remain firmly fixed on what’s next for this tech giant.

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