Zomato is on a roll!

Zomato : 💩 LinkedIn Gyandus : oo bhai, Maza aa Gaya (Their roast was killer though, but you get my point)

This may sound like a dumb question, but why do these companies fire just before the IPO? isn't an IPO a good thing? More cashflow. Shouldn't they be taking care of their employees who made it reach there? What exactly is the thought process behind this mass layoff before IPO?

Selling IPhones and PS-5, people will pay a few hundred bucks as platform fee. And when the start selling cars on Blinkit, then Dilli bohot dur nahi. /s

Zomato delivered another great set of results. Now they are adding 250Cr cash every quarter. The company hit two benchmarks this quarter according to my calculations, 50,000 Cr worth of orders (4x Q3) and 100 Cr orders (4x Q3), and these are growing 25-30% year on year. Why is this interesting? As some of you might know, they have started adding platform fees to the orders. Even one more rupee of platform fee will add 100 Cr to EBITDA. So, if they increase fees from 5 to 10, that's 500 Cr more EBITDA every year. Now, If you look at this quarter's results vs last quarter's results, they have added ~3600 Cr of order value, and made 380 Cr of EBITDA (this does not include Events). Which means they are making 10% as EBITDA. In next 3 years, if Zomato doubles their order value to 1,00,000 Cr, and even make 8% EBITDA, this could mean 8000 Cr EBITDA (almost 1 billion dollars). What markets will give as multiple on this, is guess work. Could be 25-40x (Don't hold me on this). Hence the stock looks undervalued from a 3 year lens

Found this post from Zomato CEO

Food tech market is 50B+ ( duopoly) Most of my friends use swiggy for everything like food, groceries and dine out. They say Zomato sucks in ui ux and 3rd grade restaurants are there at Zomato, swiggy is better at offers and quality restaurants. Zomato peak stock value was 180inr, which makes it a 15B firm, by that logic swiggy can get even 20B ipo. PS - Baron capital already raised swiggy valuation to 13.9B usd What do u think guys?

- Zomato grew faster than Swiggy in July, with a 29% YoY increase compared to Swiggy's 11%, according to UBS analysts. - Zomato's MoM order growth was 1.6%, while Swiggy saw a 4.6% decline, leading to increased market share for Zomato. - Zomato's market share in India's food delivery sector is estimated at 55%, while Swiggy's has slipped to 45%. - Zomato has reported five consecutive quarters of net profits, whereas Swiggy logged an operating loss of over Rs 1,000 crore in the first nine months of FY24. - Swiggy CEO Sriharsha Majety acknowledged the pros and cons of having a listed competitor like Zomato, noting the constant comparisons but also the benefits of market awareness. Source: [Moneycontrol](https://www.moneycontrol.com/news/business/startup/zomato-grew-faster-than-ipo-bound-swiggy-gained-more-market-share-in-july-12801796.html)

Zomato is eyeing a new dish: Paytm's ticketing business. The potential Rs 1,500 crore acquisition is a bold move by Zomato to diversify beyond its core food delivery domain. The Strategy: - Bolster "going-out" vertical (event bookings, dining) to offset slowing food delivery growth - Leverage Paytm's established ticketing platforms to expand the segment - Capitalize on strong revenue growth in Zomato's current going-out business For Paytm, the sale is a strategic slice. Faced with regulatory hurdles, the company is refocusing on its payments and lending operations. The deal would allow Paytm to streamline its portfolio and double down on its core strengths. The acquisition underscores the shifting strategies of India's tech titans as they navigate a fiercely competitive landscape. With growth slowing in traditional segments, companies like Zomato are hunting for new avenues to keep the revenue engine humming. Another Blinkit story in the making? 🚀

- Zomato has launched a new 'Group Ordering' feature, allowing users to place orders in groups by sharing a link with friends. - The feature is live on the Zomato app and will be rolled out to all customers in phases, according to cofounder Deepinder Goyal. - This launch follows Swiggy's introduction of a similar feature, which accounted for 6% of all orders during its first weekend. - Zomato has been diversifying its offerings with new features like an all-electric large order fleet, 'Pure Veg' fleet, and last-mile delivery for office goers. - The company also recently introduced features like removing past orders from history and enabling cash payments with instant credit to Zomato Money accounts. Source: [Inc42](https://inc42.com/buzz/zomato-rolls-out-new-feature-for-users-to-place-orders-in-groups/)