Zomato Bundle
Who Owns Zomato?
Understanding Zomato's ownership is key to grasping its strategy in the food tech world. Founded in 2008 as FoodieBay.com, it became Zomato in 2010, aiming to be a comprehensive restaurant resource.
Zomato, a public company with nearly 7,335 employees as of May 31, 2025, had a market cap of approximately ₹2.47 lakh crore in November 2024. Its business spans food delivery, quick commerce, and B2B supplies, with food delivery making up 63% of its operations.
The ownership of Zomato has evolved significantly since its inception. Initially driven by its founders, Deepinder Goyal and Pankaj Chaddah, the company's structure has transformed with public offerings and investments from various entities. This evolution reflects its growth and expansion into a multifaceted food technology platform, including its Zomato BCG Matrix analysis.
Who Founded Zomato?
Zomato's journey began in 2008 as FoodieBay.com, conceived by Deepinder Goyal and Pankaj Chaddah during their time at Bain & Company. Their initial idea of digitizing restaurant menus for an internal company platform quickly gained traction, leading them to leave their jobs in November 2009 to pursue this venture full-time. The company was officially incorporated as DC Foodiebay Online Services Private Limited on January 18, 2010, and later rebranded to Zomato in November 2010 to reflect a broader vision.
Founding Vision
Deepinder Goyal and Pankaj Chaddah founded Zomato with the initial aim of simplifying restaurant menu access. Their early success stemmed from an internal company intranet solution.
Early Funding
Info Edge (India) Ltd. provided the crucial initial funding of $1 million. This early backing was instrumental in the company's formative stages.
Growth Investment
In November 2013, Sequoia Capital joined Info Edge in a significant funding round. This collaboration helped raise a total of $37 million, fueling further expansion.
Shareholder Landscape
Prior to its IPO, Zomato had 73 shareholders. A substantial 89% of shares were held by 18 major shareholders, each owning 1% or more.
Founder Stakes (Aug 2020)
Deepinder Goyal held a 7.7% stake, valued at approximately $245.2 million. Pankaj Chaddah, despite departing in 2018, retained a 1.75% stake, worth around $55.7 million.
Co-Founder Equity
Gunjan Patidar, a co-founder and former CTO, held a 0.54% stake as of August 2020. This stake was valued at over $17.25 million at that time.
Zomato's early ownership structure was characterized by significant stakes held by its founders and early investors. By the time of its IPO filing, the company had a diverse shareholder base, with a concentrated ownership among a few key entities. The voting rights associated with early convertible securities were not always uniform, with voting power being granted more selectively in later funding rounds. This history of Zomato ownership reflects a typical growth trajectory for tech startups, balancing founder control with the need for external capital. You can learn more about the company's evolution in the Brief History of Zomato.
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How Has Zomato’s Ownership Changed Over Time?
Zomato's ownership journey has been dynamic, significantly shaped by its successful Initial Public Offering (IPO) in July 2021. The IPO, which saw shares priced between ₹72-76, was oversubscribed by 38 times, indicating strong investor confidence. Upon listing, Zomato's shares opened at ₹125.85, a remarkable 66% premium, propelling its market capitalization past ₹1 lakh crore and valuing the company at over $13.3 billion on its debut day.
| Shareholder Type | Percentage of Ownership (as of July 2025) | Key Changes/Notes |
|---|---|---|
| Enterprises | 67.11% | Largest shareholder group. |
| Funds | 37.09% | Includes mutual funds and other investment funds. |
| Founders | 6.52% | Reflects founder stakes after IPO and subsequent activities. |
| Foreign Portfolio Investors (FPIs) | 42.34% | Significant increase from 11.31% in December 2021. |
| Domestic Mutual Funds | 21.59% | Tripled ownership from 4.5% in June 2022 to over 12.5% in June 2024. |
| Other Domestic Institutions | 5.00% | |
| Retail and Other Public Shareholders | 31.07% | |
| Promoters | 0% | Zero promoter shareholding. |
The ownership structure of Zomato reflects a broad base of institutional and public investors, with enterprises holding the largest share. The company's strategic fundraising activities, such as the November 2024 Qualified Institutional Placement (QIP) of ₹8,500 crore, have further solidified its financial standing and attracted significant investment from major domestic mutual funds, supporting its expansion plans, particularly for its quick commerce arm.
Key Stakeholders and Their Influence
Zomato's investor base is diverse, featuring prominent names in the global and domestic investment landscape. These major investors play a crucial role in the company's strategic direction and growth initiatives.
- Deepinder Goyal, the CEO and founder, holds approximately 4.19% as an individual shareholder as of July 2025, with his stake valued around ₹8,400 crore as of March 2024.
- Major institutional investors include Info Edge Ventures, Ant Group, Peak XV Partners, Sequoia Capital, Temasek, Baillie Gifford, Naspers, Fidelity Investments, Tiger Global Management, Motilal Oswal, ICICI Prudential Asset Management Company, HDFC Mutual Fund, and Kotak Mahindra Bank.
- The substantial increase in FPI holdings to 42.34% by June 2025 highlights growing international investor interest.
- Domestic mutual funds have significantly boosted their Zomato ownership, reaching 21.59% by June 2025, demonstrating strong domestic institutional backing.
- The company's Marketing Strategy of Zomato is often influenced by the insights and capital provided by these key stakeholders.
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Who Sits on Zomato’s Board?
The board of directors for Zomato guides the company's strategic path, comprising representatives from significant shareholders, the founders, and independent members. This structure is designed to uphold robust corporate governance and safeguard the interests of all shareholders.
| Board Member Role | Affiliation/Representation | Key Responsibilities |
|---|---|---|
| Chairman | Major Shareholder/Independent | Overseeing board meetings, ensuring good governance |
| CEO & Managing Director | Founder/Executive | Leading company operations and strategy |
| Independent Directors | Various backgrounds | Providing objective oversight and strategic advice |
| Investor Representatives | Major Institutional Investors | Representing the interests of significant Zomato investors |
Zomato generally adheres to a 'one-share-one-vote' principle for its equity shares, meaning each share typically carries a single vote. This structure was in place at the time of its initial public offering, with only one class of equity shares issued. While early funding rounds might have seen variations in voting rights attached to convertible securities, the standard practice is to grant voting rights proportionally to share ownership.
Shareholder Approval for ESOPs
In July 2024, Zomato shareholders approved a substantial employee stock option pool (ESOP).
- The new ESOP pool comprises 18.2 crore shares.
- The value of this pool was approximately ₹3,800 crore at the time of approval.
- 75% of investors voted in favor of the ESOP proposal.
- Institutional investors, including Fidelity Investments, Temasek, CPPIB, and Vanguard, were among those whose votes influenced the outcome, with around 25% voting against it.
- The aim is to cultivate a 'founder mindset' among senior employees and enhance long-term shareholder value.
Understanding the voting power dynamics is crucial for comprehending Zomato ownership and who controls Zomato company decisions. The recent ESOP approval highlights the influence of institutional investors in shaping the company's future, even when a majority of individual investors may support a proposal. This balance of power between founders, management, and major investors is a key aspect of Zomato's corporate structure, impacting its strategic direction and operational policies. For a deeper understanding of the competitive environment in which Zomato operates, exploring the Competitors Landscape of Zomato provides valuable context.
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What Recent Changes Have Shaped Zomato’s Ownership Landscape?
Zomato's ownership landscape has evolved significantly over the past few years, marked by substantial fundraising and shifts in investor demographics. These changes reflect the company's strategic expansion and growing appeal to both domestic and international capital markets.
| Investor Type | June 2025 Stake | December 2021 Stake |
|---|---|---|
| Foreign Portfolio Investors (FPIs) | 42.34% | 11.31% |
| Domestic Mutual Funds | 21.59% | 4.38% |
| Promoter Shareholding | 0% | 0% |
Recent developments highlight Zomato's aggressive growth strategy and its impact on ownership trends. The company's Qualified Institutional Placement (QIP) in November 2024 successfully raised ₹8,500 crore, primarily from domestic institutional investors. This capital infusion is intended to fuel the expansion of its quick commerce business, Blinkit, and strengthen its core food delivery operations. This move has also coincided with a notable increase in the stake held by Foreign Portfolio Investors (FPIs), which rose to 42.34% by June 2025, absorbing shares previously held by significant pre-IPO investors. Concurrently, domestic mutual funds have also substantially increased their participation, reaching 21.59% by June 2025, signaling growing domestic institutional confidence in Zomato's future prospects. The company's strategic acquisitions, such as the Paytm Entertainment Ticketing Business for ₹20.5 billion in August 2024, further underscore its ambition to diversify its service offerings.
Fundraising and Expansion
Zomato raised ₹8,500 crore via QIP in November 2024 to expand Blinkit and core food delivery. The company plans to double its Blinkit dark store count to 1000 by the end of FY25.
Investor Base Evolution
FPI stake grew to 42.34% by June 2025, while domestic mutual funds increased to 21.59%. This reflects a broader shift in the Zomato ownership structure.
Strategic Acquisitions and Investments
Zomato acquired Paytm's Entertainment Ticketing Business for ₹20.5 billion in August 2024. Investments were also made into Blinkit (₹300 crore) and Zomato Entertainment (₹100 crore) in June 2024.
Corporate Rebranding and ESOPs
The company is rebranding to Eternal Limited, with its stock ticker changing to ETERNAL. A new ESOP pool of 18.2 crore shares, valued at approximately ₹3,800 crore, was approved in July 2024, impacting Growth Strategy of Zomato.
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