Connect with us

National

Zomato’s Deepinder Goyal’s 13-Year Journey To Today – dot newz

Published

on


After his wife got a teaching job at DU, Deepinder Goyal quit to pursue entrepreneurship full-time

For over a decade, Deepinder Goyal’s Zomato Ltd. has delivered soul food from spicy dosa crepes to soft bread Pav Bhaji with curried vegetables to millions across India.

Now, investors get a taste of the fast-growing food delivery giant. The startup soared more than 80% in its Friday debut following a $1.3 billion initial public offering.

Zomato, the first of a generation of internet unicorns to tap India’s capital markets, has generated a seldom-seen frenzy among the local investment community. Investors bragged on Twitter about snagging shares in the startup, yearning for the sort of returns Facebook Inc. and Alibaba Group Holding Ltd. generated. Its IPO is India’s biggest since March 2020, and got about 35 times more bids from anchor investors than shares it intended to sell.

j10sglkk

A Zomato Ltd. delivery rider packs an order into a delivery bag in Mumbai, India, on Friday, July 16, 2021. Zomato $1.3 billion initial public offering was fully subscribed on the first day of sale, after anchor funds including BlackRock Inc. bid for 35 times more stock than was offered to them.

Zomato’s listing comes on the heels of strong food-delivery debuts, including DoorDash Inc. and China’s Meituan. It’s the culmination of a 13-year journey for co-founder Goyal, 38. He and Pankaj Chaddah, who has since left, started Zomato as a delivery service in 2008 for their Bain & Co. colleagues.

Last week, Goyal tweeted about stress-eating and pinned a clenched-teeth emoji to his Twitter account.

He can be forgiven for an attack of nerves.

Zomato’s first-day performance will serve as a barometer for India’s budding tech scene of unprofitable unicorns, which has produced a coterie of up-and-coming giants from Ant Group Co.-backed Paytm to Walmart Inc.’s Flipkart Online Services Pvt. Also backed by Jack Ma’s Ant, Zomato’s debut comes amid investor concern that India’s markets are a bubble waiting to burst and valuations have outstripped fundamentals.

Optimism about India is tempered by one of the worst coronavirus outbreaks in the world, which threatens to erode decades of economic gains. Investors also have to contend with political risks, with Narendra Modi’s government clamping down on foreign retailers, social media giants and streaming companies.

Pizza Moment

For many others, the potential outweighs the downsides. With almost half its 1.3 billion people accessing the internet via smartphones, a bet on Zomato represents optimism that India’s tech upstarts could go the way of the U.S. or China, particularly as India’s internet infrastructure remains nascent and consumers are just getting used to buying online.

“This is how it is supposed to work. Nine out of 10 will fail,” Goyal, who is barred from commenting in the run-up to the listing, said in an earlier interview. “But the one that thrives will be a spectacular success.”

In previous conversations, Goyal recounted how he first got the idea for an online service when, as a math and computer science student at the Indian Institute of Technology, he was particularly frustrated with a pizza order. His resolve strengthened after he graduated and joined Bain, where he saw colleagues in the company cafeteria skimming the limited menu and talking longingly about food at nearby restaurants.

Goyal and Chaddah started uploading menus of neighborhood cafes and restaurants onto the company intranet, with phone numbers. That was a huge hit with coworkers, driving a weekend venture they christened foodiebay.com. After his wife got a teaching job at Delhi University, Goyal quit to pursue entrepreneurship full-time, shrugging off the onset of the global financial crisis.

In the India of a decade ago, entrepreneurship was frowned upon and Goyal didn’t tell his parents — both teachers — until much later. In the first year, the startup began by listing thousands of restaurants in India’s six biggest cities. Then came an email from entrepreneur-turned-investor Sanjeev Bikhchandani, who invested $1 million through his Info Edge India Ltd.

Rapid Expansion

Foodiebay was renamed Zomato to rhyme with tomato. The founder also wanted to avoid echoes of Ebay Inc. Bikhchandani’s investment is now a holding of almost 19% that could mean a billion-dollar-plus return, at least on paper.

Gurgaon-based Zomato, already one of India’s fastest-growing startups in the early days, embarked on an international expansion, getting into table bookings, home delivery and restaurant and nightlife guides in 100 cities across 19 countries including Turkey, Brazil, New Zealand and Indonesia.

The founder introduced a one-touch payment model, where money was automatically deducted from a user’s credit card after dining and leaving the restaurant, testing this cashless mobile payments system in the Middle East.

Sequoia Capital invested in 2013 after Goyal and the investment firm shared 7 a.m. cup of coffee.

Around that time, rival Swiggy came on the scene, blossoming into a strong rival with similarly robust backing. Investors globally also started re-evaluating the rationale of cash-burning startups in certain sectors, spurring the collapse of many nascent players in Zomato’s arena.

a9cv4ll8

Delivery riders for Zomato Ltd., center, and Swiggy, operated by Bundl Technologies Pvt., wait to collect orders outside a restaurant in Mumbai, India, on Friday, July 16, 2021. Zomato $1.3 billion initial public offering was fully subscribed on the first day of sale, after anchor funds including BlackRock Inc. bid for 35 times more stock than was offered to them.

In 2016, Zomato began laying off hundreds of employees and withdrawing operations from more than a dozen countries. It saw its billion-dollar valuation slashed in half by analysts at HSBC Securities and Capital Markets (India).

“Some companies have blown away money on highly unprofitable models,” Goyal told Bloomberg News at the time, saying his focus was to move Zomato into the black.

Zomato remains in the red: losses stood at 6.82 billion rupees ($91.7 million) for the nine months through December 2020, according to its IPO prospectus. To keep pace with Swiggy, Zomato continues to expand and acquired the India operations of Uber Eats for $350 million.

Fellow entrepreneurs and industry executives from Amazon India chief Amit Agarwal to Paytm founder Vijay Shekhar Sharma said on Twitter they would be cheering Goyal on during listing day.

“To succeed, an entrepreneur has to be an all-rounder and have a hundred strengths,” early investor Bikhchandani said in a text message. “Deepinder has them.”

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)





Source link

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

National

Tax Officials To Reply On Newslaundry Plea Over Leak Of Seized Material – dot newz

Published

on

By


The court orally observed leaking of data is “ethically, morally and legally” wrong. (File)

New Delhi:

The Delhi High Court Friday sought Income Tax Department’s stand on a plea by online news portal Newslaundry and its co-founder Abhinandan Sekhri to restrain any leakage of the material seized during a survey operation held earlier this month.

A bench of Justices Manmohan and Navin Chawla granted time to the department’s counsel to seek instructions on giving an undertaking against any leak and asked that the concerned officer join the proceedings on the next date of hearing i.e. September 21.

“Ask your client (to join proceedings) so that we can close it then and there. Let him be by your side..If he gives a statement, we can put a quietus to the matter,” said the bench to the lawyer who asserted that the fear of leak was a “bald apprehension”.

Data of thousands of assessees is in safe custody of the department and it can be used only in accordance with law, said counsel for the department Ajit Shamra.

During the course of the hearing, the bench orally observed, “Normally, no one’s data should be leaked” as it is “ethically, morally and legally” wrong.

“We have seen it on channels, people’s data that has been seized is being displayed… It should not happen,” it remarked.

Senior counsel Siddharth Dave, appearing for the petitioners, said that four notices under the Income Tax Act were issued to his client and a survey was held in the news portal’s premises on September 10, during which several devices, including a mobile phone and a laptop belonging to the petitioner co-founder, were seized by the IT authorities, which contained several information which were of no relevance to any income tax proceedings.

The data may contain personal photos and information pertaining to investigative stories, he said.

The senior lawyer argued that any data breach would be in violation of right to privacy and therefore a direction should be passed to the IT authorities to not leak any data and delete whatever is of no relevance to the proceedings.

It was also contended that any seizure during a survey operation was beyond the scope of survey and that no “hash value” of the seized data was given.

“Please direct them not to leak seized data collected in this purported garb of a survey and allow me to delete (non I-T related) data,” the senior lawyer submitted.

In the petition filed through advocate Nipun Katyal, the petitioners have said that the income tax officers and authorities do not have any power to interrupt the ordinary peaceful citizens of the country in any manner they like by utilizing the large powers given to them, without keeping strictly within the four corners of those large powers.

“The Petitioners are heading a news organization, the Petitioners herein have sources, contacts and other information on the digital machines. It is the fiduciary duty of the Petitioners to protect them and keep it confidential.

“It is further submitted that the legal communication regarding existing cases is present in the personal laptop and phone of the Petitioners. If in any circumstances, the leaks are committed, it shall be a clear breach of the attorney client privilege as well as whistleblowers confidentiality,” the plea says.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)



Source link

Continue Reading

National

1 Crore Jabs Till 1:30 PM. On PM’s Birthday, Government Aims At Record – dot newz

Published

on

By


The vaccination campaign is key to BJP’s three-week celebrations to mark PM’s birthday.

New Delhi:

As the government raced to deliver a vaccination record on Prime Minister Narendra Modi’s birthday today, the country clocked over 42,000 vaccinations a minute, a senior health official said. Vaccinations crossed one crore in the afternoon – for the fourth time in less than a month – setting up a milestone by the end of the day.

Aiming at 2 crore vaccinations as PM Modi turns 71, the government added a ticker to track Covid shots being given across the country.

“Celebrating the relentless efforts of India’s vaccinators against COVID-19, we have added a ticker to show vaccinations happening in near real-time. We are currently clocking over 42,000 vaccinations/minute or 700/second,” tweeted National Health Authority chief RS Sharma, sharing the new feature.

The vaccination campaign is key to the BJP’s three-week celebrations to mark the Prime Minister’s birthday.

“Let’s do #VaccineSeva and give him (PM Modi) birthday gift by getting vaccinated those who have not taken the dose so far,” Union Health Minister Mansukh Mandaviya had tweeted yesterday, urging people to get the shots.

To achieve its target, the BJP had prepped health volunteers “to ensure that the maximum number of people get their COVID-19 vaccines on the day”.

In recent days, India has reported more than one crore Covid shots in a day more than once.

Senior BJP leaders say the party wants to see the day “recorded in history” as one that saw a record number of Covid vaccines given.

By noon, over 94,00,000 vaccinations had been achieved. PM Modi’s home state Gujarat had crossed five lakh doses, more than the daily doses in the last seven days.

By afternoon, Bihar had given Covid shots to 7.3 lakh people, three times more than the average of the last three days. Madhya Pradesh was at more than 5 lakh doses – 75 per cent of the last two days’ average.





Source link

Continue Reading

National

Under-Construction Flyover Collapses In Mumbai’s Bandra, 14 Injured – dot newz

Published

on

By


The under-construction flyover collapsed at about 4.40am.

At least 14 people were injured after a portion of an under-construction flyover collapsed in Bandra Kurla Complex in Maharashtra’s Mumbai today. The injured were taken to the VN Desai Hospital and their condition is stable, the Brihanmumbai Municipal Corporation said.

The flyover collapsed at about 4.40am.

Visuals shared by news agency ANI showed police personnel and fire departments on the spot as the rescue work is underway.

There has been no loss of life and no person is missing due to the collapse, Deputy Commissioner Of Police Manjunath Singe told news agency ANI.

The flyover is located at MTNL junction in suburban Bandra Kurla Complex (BKC) and will connect the complex’s main road and Santa Cruz- Chembur link road. The construction work of the flyover is being undertaken by Mumbai Metropolitan Region Development Authority (MMRDA).

Further details related to the flyover’s collapse are awaited.





Source link

Continue Reading

Trending

Copyright © 2017 Dot Newz | Developed by MCVP Group 8