Zomato was founded in 2008 after a Delhi duo found out that people were struggling to find the restaurants and their menu. The original idea for Zomato was to just accumulate data and help bring all the restaurants, their prices, menus and specialties in one place. This idea was executed brilliantly by Deepinder Goyal and Pankaj Chaddah. This restaurant search and discovery application have come a long way since. It has managed to enter the delivery business in India and several other countries while it is present in 24 countries as a restaurant finder.
The company has managed to find its place in the markets abroad as well. This is because it was early in this segment and there were literally no players who were plying their trade in this enormous market. That said, the company is present in countries like Australia, Brazil, UAE, Indonesia, Ireland, Italy, Lebanon, Qatar, Slovakia, Singapore, and many more. In UAE, the company had also started its delivery business, while in other countries it is still trying to taste the wind. The Gurugram-based company had also invested in building a Zomato Gold customer base in the UAE.
The company had been successful as it was managing thousands of deliveries in a day. By this year, the company was accounting for 20% of the deliveries in UAE. It had built a good business but it has now decided to sell its UAE vertical to Delivery Hero. It was reported not long ago that the Delivery Hero was investing in Zomato as the latter decided to focus on the Indian market and drop its business in the neighbor country.
That said, Delivery Hero has acquired its business in the UAE and Niklas Ostberg, CEO of Delivery Hero was happy with the acquisition. The CEO said that Zomato had done wonders in the UAE and it will be easy for them to operate because of it. He also talked about becoming a shareholder in the Indian company’s business and was happy to share the expertise brought to the table by Delivery Hero. Delivery Hero is an international company from Germany. It is a Berlin-based company which operates worldwide with an audience ranging from one end to the other. The company could help Zomato greatly as it looks to topple rivals Swiggy.
“Zomato has built a successful food delivery business in the UAE and India on the back of its restaurant search and discovery app and website. The acquisition will allow us to further improve our service to customers in the UAE. We are also excited to become a shareholder in Zomato’s rapid food delivery growth story in India and share our learnings,” Niklas said in a statement.
Above all, the German company has promised to invest more than $50 million in Zomato’s global business. Deepinder Goyal was also happy and welcomed Delivery Hero onboard. “I am delighted to welcome Delivery Hero as a partner and shareholder and look forward to learning from their global experience to help us strengthen our fast-growing India food delivery business,” Deepinder said in a statement.