Food Delivery Giant Zomato's Deepinder Goyal Enters Billionaire Club on Stock Surge

Zomato’s Founder and CEO, Deepinder Goyal, has become a billionaire following a record surge in Zomato shares over the past year. The stock has soared more than 300 percent since its low in July 2023.

The stock of the food delivery giant reached a new high of Rs 230 on the BSE, gaining as much as 2 percent during the day and pushing its market cap beyond Rs 1.8 trillion.

Also Read: Swiggy And Zomato Raise Platform Fees To Boost Revenue. How It Affects You

As a result, Goyal, 41, has become India’s wealthiest professional manager, with his net worth exceeding Rs 8,300 crore. Goyal currently holds 36.95 crore shares, amounting to a 4.24 percent stake in the company.

The stock has surged since the beginning of 2023, driven by expectations that its quick commerce business, Blinkit, may continue to outperform competitors and achieve profitability sooner than anticipated.

The company previously projected that Blinkit could reach EBITDA break-even in the first quarter of fiscal 2025. Additionally, the profitability of its food delivery segment has bolstered investor confidence.

According to a recent Goldman Sachs note, Blinkit, the quick commerce firm owned by Zomato, now holds a higher implied value than Zomato’s core food delivery business.

Blinkit’s valuation has surged to $13 billion, up from $2 billion in March 2023, with a per-share value of Rs 119, surpassing the food delivery segment’s Rs 98.

Zomato Hikes Platform Fee To Rs 6 from Rs 5

Zomato has hiked the platform fee to Rs 6 from Rs 5 per order in Delhi, Mumbai and Bengaluru.

Its rival Swiggy, which had also increased the platform fee in select cities on Sunday, reverted to charging Rs 5 per order on Monday in Delhi, Mumbai and Bengaluru, as shown on its app.

The two companies had introduced platform fees last year, initially at Rs 2 per order, which has been increased gradually.

Platform fee is treated as one of how food-delivery platforms are trying to increase their profitability, with a duopoly in place as Zomato and Swiggy are the key players in the segment.