Zomato IPO: Information analysis

Zomato is a pure-play technology platform that connects customers, restaurant partners, and delivery partners. Its customers use its platform to search and discover restaurants, read and write customer-generated reviews, view and upload photos, order food delivery, make dine-in reservations and make payments through its app. On the other hand, the restaurant partners are catered with various marketing tools to help them increase customer engagement and acquisition and provide the last-mile delivery service. The company is backed by Info Edge, which is also the owner of Naukri.com. The company's business is built around the idea that over time, people in India are actively eating out, and thus to capture this shift in behaviour, the company has been offering various product offerings such as: Food delivery: The company has close to 1.7 lakh delivery partners through whom it caters to the delivery service of around 1.5 lakh active food delivery restaurants. The company generated most of its revenues from food delivery and related commissions charged to restaurants for using its platform. The restaurants also pay for advertising on Zomato's app. Dining-out: The company's app is one of the preferred destinations for dining-out-related services. However, this service has been severely impacted due to the Covid-19 related restrictions on dining out, unlike the food delivery business. The restaurant partners pay advertising fees for enhanced visibility on its platform. Hyperpure: Apart from its above two B2C offerings, the company also provides B2B service under which it sources supplies for its restaurant partners, helping them manage their supply chains more effectively. The company started this service in 2019 and currently supplies to more than 9,000 restaurants across six cities in India. Revenue from this segment grew from Rs 15 crore in FY19 to Rs 200 crore in FY21. Zomato Pro: This is an exclusive paid membership program that provides discounts and offers to its members for a fixed fee. This allows the restaurant partners to market themselves to a select group of audience. Strengths The company is not just into food delivery. It has a presence over the food ecosystem, and with hyperpure service, it has further increased its foothold. Its end-to-end food service makes it a unique foodservice platform globally. Online food delivery is a highly underpenetrated market in India. Out of the active internet