Deepinder Singh Goyal, 41, has become a billionaire in the country with a net worth of Rs 8,300 crore. He reportedly has 36.95 crores worth of shares in the company..
Deepinder Singh Goyal, Zomato's CEO and founder has attained the billionaire status becoming India's richest professional manager with a net worth of Rs 8,300 crore as Zomato's share price jumped over 300 per cent since its slump 2023 as per a report by Moneycontrol.
It is reported that Goyal has 36.95 crore shares which is approximately 4.24 percent stake in the company.
The company has recently turned a tide in their fortunes after their stocks appreciated in value overcoming a slump in 2023.
The stock attained a price of Rs 230 on the BSE with a 2 per cent gain as of 12:30 pm.
The reason cited for the rise in Zomato stock's price since the beginning of 2023 was the expectation that the quick commerce business would perform better than its counterparts and turn profitable earlier than expected. It is also stated that food delivery is a profitable business which has interested prospective investors, the report adds.
Deepinder Singh Goyal, an IIT Delhi graduate set out to create the food delivery app that would make it convenient for people to order food. During his time at Bain and Company, he co-founded foodiebay.com which was rechristened as Zomato.com after recognising the potential of the food delivery platforms in the country.
The company was funded by Info Edge in 2011 as Goyal and his team left their respective jobs to solely focus on the food delivery platform. Zomato gained traction among the people and quickly rose to prominence attaining a unicorn status in 2018.
In the last quarter of FY24, Zomato-owned Blinkit turned adjusted EBIDTA positive. The quick commerce platform plans to have 1000 dark stores or micro warehouses where the platform delivers goods, by March 2025. With the expansion, it aims to increase its penetration in cities such as Bengaluru, Mumbai and Hyderabad.
Zomato seems to be taking great strides in comparison to its peers like Swiggy Instamart with the latter having no reason to step the pedal of the gas. This also makes the investors optimistic about the prospect of investing in the company.
Goldman Sachs has estimated Zomato’s market share at 56-57 per cent. “At a 31% FY24-27 GOV CAGR, Zomato is the fastest growing food delivery company within our global coverage and also one with the highest margin profile,” it said
Blinkit, acquired by Zomato in 2022 for $568 million, has contributed immensely to the well-being of the company's financial health.
The quick commerce platform has a higher implied value than its parent entity with the quick commerce platform valued at $13 billion which is more than a 6-fold increase compared to its valuation of $2 billion in March 2023.
The per-share value of the quick commerce platform is also higher at Rs 119 with Zomato's being at Rs 98.
The company, analysts reportedly believe, would be focusing on its growth investments over immediate profitability expansion to tap the potential opportunities in the market, achieving supremacy in the e-commerce realm.