Zomato, a pioneer in India's food-tech industry, has seen a rollercoaster ride in its stock market journey. From its much-hyped IPO to recent fluctuations in shareholding patterns, investors are keenly watching every move. But what makes Zomato's stock unique? Let’s dive into the latest trends, key players, and future predictions.
1. The Rise and Dip of Zomato’s Stock
Zomato went public in July 2021 with a stellar listing, but like any growth stock, it has faced periods of volatility. In 2025, the stock has seen significant fluctuations, dropping from ₹225.43 in February to ₹201.43 in March. With increased competition from Swiggy and quick-commerce players like Blinkit, the battle for market dominance is fierce.
2. Changing Shareholding Landscape
One of the most interesting developments in Zomato’s stock is its shifting shareholding pattern:
- Foreign Institutional Investors (FIIs): Dropped from 52.53% to 47.31%, signaling cautious international sentiment.
- Retail Investors: Holding strong at 32.16%, showing continued faith in Zomato’s long-term vision.
- Antfin’s Exit: The Chinese firm Antfin Singapore recently offloaded nearly half its stake, raising concerns about strategic shifts.
3. Quick-Commerce: A Boon or a Bubble?
Zomato’s foray into quick-commerce through Blinkit has sparked debates. While the segment promises high growth, some experts, like TVS Capital’s Gopal Srinivasan, have called it an "unsustainable frenzy." Will Blinkit be a game-changer or an Achilles' heel for Zomato?
4. Future Outlook: Should You Invest?
Zomato’s expansion beyond food delivery, into events (District) and kitchen supplies (Hyperpure), shows strategic diversification. However, increased operational costs and regulatory scrutiny could impact profitability. Investors should weigh the company’s innovative moves against its financial performance before making a decision.
Zomato, founded in 2008 by Deepinder Goyal and Pankaj Chaddah, has evolved into a multifaceted platform offering various services:
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Food Delivery: Initially established as a restaurant discovery platform, Zomato now provides food delivery services across numerous cities in India, connecting users with a wide array of restaurants.
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Quick-Commerce (Blinkit): In 2022, Zomato acquired Blinkit, a quick-commerce platform specializing in rapid grocery and essentials delivery. This acquisition has positioned Zomato to compete with other quick-commerce services like Swiggy's Instamart and Reliance Industries' JioMart.
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Live Events (District): Zomato has ventured into organizing live events under the brand name 'District,' further diversifying its service offerings.
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Kitchen Supplies (Hyperpure): Through Hyperpure, Zomato supplies high-quality ingredients and kitchen essentials to restaurants, aiming to enhance food quality and safety standards within the industry.
In February 2025, reflecting its expanded business scope, Zomato announced plans to rebrand itself as 'Eternal' and unveiled a new logo. This rebranding encompasses its four major business units: Zomato (food delivery), Blinkit (quick-commerce), District (live events), and Hyperpure (kitchen supplies).
For restaurant owners and partners, Zomato offers a dedicated platform to manage their business operations effectively. The 'Zomato for Business App' enables partners to handle orders, update menus, and access analytics to improve service delivery.
Despite its growth and diversification, Zomato has faced challenges, including antitrust investigations. In November 2024, India's Competition Commission found that Zomato and Swiggy had breached antitrust laws by favoring certain restaurants, leading to reduced market competitiveness.
Additionally, Zomato has encountered tensions with traditional restaurants over its standalone apps, Snacc and Bistro, which promise rapid meal deliveries from dark kitchens, potentially disadvantaging traditional eateries.
Financially, Zomato reported a 57% decline in its third-quarter net profit in January 2025, attributed to increased competition and higher expenditures on new fulfillment centers for Blinkit.
Despite these challenges, Zomato remains a significant player in India's food delivery and quick-commerce sectors, continually adapting its strategies to meet evolving market demands.
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