“Today is a big day for us. A new Day Zero. But we couldn’t have gotten here without the incredible efforts of India’s entire internet ecosystem,” said Zomato Co-founder Deepinder Goyal ahead of the day the company got listed.
In a blog post titled “Letter from Deepi,” he praised his colleagues and investors, and said Zomato will not alter the firm’s focus for short term profits at the cost of the long term success of the company.
“India is a tough market to operate in, but if you are building to succeed in India, you are already exceptional. I say that because I believe Zomato and Swiggy are two of the best food delivery apps in the world today. We have a long way to go before we can call ourselves world class by our customers’ standards, but we are determined to get there,” Goyal said.
Food delivery in India is largely a duopoly with Zomato and Swiggy being the players. Zomato had made a foray into international markets earlier, but is now focusing on its home market. Co-founder Gaurav Gupta had told Business Standard earlier that the firm is very focused on India, and the IPO will not change how it operates as a business.
In a note in May, Anand Rathi Research said that in 2019 food consumption in India was about $670 billion, mostly driven by home-cooked food. Food Services, defined as non-home-cooked food or restaurant food, now contributes only around 10 per cent to the food consumption market. This is substantially lower than in global economies such as the US and China where food services contribute respectively about 54 per cent and about 58 per cent of total food consumption.
Hence, the scope for growth is big. In his post, Goyal said several times that it takes time to build a good product and that the company would remain focused on its long-term objectives.
“The tremendous response to our IPO gives us the confidence that the world is full of investors who appreciate the magnitude of investments we are making, and take a long term view of our business,” he said.
Sanjeev Bikhchandani, entrepreneur and one of the earliest backers of Zomato, tweeted: “ Congratulations and very well done team Zomato and Deepinder. Great things take time to build. Thank you for making us look like smart investors”
Goyal added that there were many large companies that are building the India of the future.
“Jio’s prolific growth has set all of us up for unprecedented scale. Flipkart, Amazon, Ola, Uber, Paytm – have also over the years, collectively laid the railroads that are enabling companies like ours to build the India of the future. We stand proudly and humbly on the shoulders of giants, and we thank everyone for giving us, and so many other startups, the opportunity to look ahead into the future,” Goyal said.
The company shared a video of the listing event at their Gurugram office. “Everything that we’ve achieved till now, and everything that we’ll achieve from hereon, we owe it all to you – our customers, delivery partners and restaurant partners. Today, on the day of our listing, we wish we could’ve brought everyone under a single roof. Since that’s not possible, we decided to bring a few of our customers, delivery partners and restaurant partners to our “ringing the bell” ceremony. We thank everyone for your continuous love. Onwards and upwards!” Zomato said in a statement.