Zomato's Leap into History: First Indian Startup in Sensex 30

The Indian startup ecosystem has reached a new milestone, one that reflects both its maturity and its potential to disrupt traditional industries. Leading the charge is Zomato, the food delivery giant, which has etched its name in history by becoming the first Indian startup to enter the prestigious Sensex 30 — Bombay Stock Exchange's benchmark index of top companies in India.

This achievement, a first for any Indian startup, marks a significant turning point for the ecosystem. By replacing JSW Steel Limited, a legacy player in the index, Zomato has not only gained an esteemed position but also underscored the evolving dominance of new-age tech-driven companies in India’s economy.

Here TICE spotlights how Zomato is making waves in the startup industry.

A Year of Stellar Performance

Zomato's inclusion in the Sensex 30 is not just symbolic; it is backed by its remarkable performance in 2023. The company’s stock has surged by a staggering 114% this year, making it one of the best-performing entities in the market. Year-to-date, the stock has soared by 124%, while its valuation has grown by 38% in the past six months. Even with a minor post-announcement dip of 3.15%, Zomato’s market capitalization remains formidable at ₹2.68 lakh crore (approximately $31.9 billion).

Profits That Speak Volumes

What makes this feat even more compelling is Zomato’s solid financial performance. In the second quarter of the current fiscal year, Zomato reported a 68.5% jump in operating revenue, reaching ₹4,799 crore. Net profits surged nearly fivefold to ₹176 crore, signaling that the company is not only expanding but also doing so profitably.

Read More: Startup Endgame: Decoding Exit Strategies for Startup Investors!

In contrast, its closest competitor Swiggy has struggled with profitability. Swiggy reported ₹3,601 crore in revenue for the same period but grappled with a net loss of ₹625 crore. This disparity underscores Zomato’s strategic edge and operational efficiency.

Bold Moves and Risk-Taking

Zomato’s journey has been defined by bold decisions and a willingness to take calculated risks. Last month, the company acquired Blinkit, a quick-commerce startup, showcasing its ambition to diversify and dominate adjacent markets. The acquisition, which raised $1 billion from institutional investors, highlights Zomato’s knack for strategic growth and innovation.

By stepping into the quick-commerce space and maintaining its foothold in food delivery, Zomato is positioning itself as a holistic player in India’s evolving e-commerce landscape.

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

The Prestige of Sensex 30

Being included in the Sensex 30 is not just a badge of honor; it opens the doors to new opportunities. The index is closely tracked by global and domestic investors, and Zomato's presence there means it will attract more index-linked investments. This recognition validates Zomato's long-term vision and risk-taking approach while bolstering its reputation as a top-tier company.

The milestone also brings hope and inspiration to the Indian startup ecosystem. It sets a benchmark for other startups striving to scale and achieve global recognition.

What's Next for Zomato?

As Zomato celebrates this landmark achievement, questions about its next move abound. Will it focus on consolidating its current market position, or will it continue its aggressive expansion into new sectors? The company’s ability to innovate and adapt will undoubtedly be key to maintaining its newfound status.

For Indian startups, Zomato’s inclusion in the Sensex 30 is a moment of collective pride. It signals that the new-age companies, driven by technology and bold ideas, are not only here to stay but are ready to redefine the corporate landscape.

Read More: Epigamia Founder's Death: A Startup Wake-Up Call

Zomato’s journey from a startup to a Sensex giant is a testament to what determination, innovation, and a vision for the future can achieve. It stands as an inspiration for the entire startup ecosystem, proving that the sky is the limit for those who dare to dream big.

Join Our Thriving Entrepreneurial Community

Twitter: @TiceNews | LinkedIn: TICE News | Instagram: @tice.news | Google: Leave a Review