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There has been a time when eating outside has been a fierce desire for many. But with changing lifestyles and easier access to intelligent technology, eating out has become a day-to-day activity. While food delivery been an excellent help for those who find it challenging to cook/ travel to restaurants for food, it has also been a compelling routine for a few others. Nevertheless, food delivery apps have been a fantastic help for food enthusiasts and foodies to explore restaurants in the locality with a touch of a smartphone. This kind of delivery can also be called Last mile delivery, as the goods are delivered directly to homes/offices. Here we will discuss about Zomato business model.

Story behind Zomato

Let us delve into how Zomato flourished from the idea of 2 IITians.

Deepinder Goyal and Pankaj Chaddah, who worked together in Bain & co New Delhi before, came together to launch Zomato in 2008. It is interesting how they found Zomato, an employee searching for restaurant menus to order food; that is when the founders thought to bring all the menus into digital format. It was initially launched as foodiebay, but eventually renamed Zomato in 2010.

In 2012, Zomato became a well-established name globally. It is present in around 22 countries serving 1.25 million orders every day.

What business does Zomato do? How do they do it?

The main business of Zomato is to let end users search and discover restaurants, thereby going to dine out or placing an order for food through the app. They also allow customers to book a table and make payments through their app while dining out at restaurants. The user interface is so user-friendly that it enables users to upload photos, write reviews and let others read the reviews before choosing the restaurants. While the public uses all these services by Zomato, the restaurant owners also benefit from being a partner with Zomato, providing them industry-specific industry marketing tools while also providing them with a reliable & efficient last-mile delivery service. Unlike Swiggy, which delivers groceries to retail buyers, Zomato provides a service known as Hyperpure that supplies high-quality ingredients and kitchen products to kitchen partners.

When the pandemic hit

Before we analyze the business model, let us see how the delivery industry has changed since the pandemic.

Though food delivery services were started before the pandemic, the pandemic created an unprecedented surge in demand for delivery.

India and the rest of the world enjoyed the comfort and safety of food, staples, veggies, and fruit delivery options. It did not stop there, but the most crucial part is the delivery of medicines through the app, which helped so many sail smooth the pandemic

Now we see what business they do, now let us see how they do their business.


While we discuss the key aspects of business model, we will also discuss the worst case scenario of each aspect

Key Partners:

Restaurants: When Zomato ties up with a restaurant, they charge no commission on the first month, and going forward, the commission is generated

Hyper Pure:  Zomato tied up with Hyper Pure to deliver groceries. Fresh produce to restaurant owners.

Delivery personnel: Zomato hires manpower for delivery, which enable super-fast delivery of goods.

Unfavorable events

  1. If the restaurant is already starving for profits or if it is a start-up in that area, the commission takes up all the profits, resulting in unsatisfactory feedback from customers regarding quantity/quality.
  2. As most of the owners procure fresh products wholesale from the local market, it is not always necessary to procure from Hyperpure, and they are scantily location weakens the delivery speed and freshness of products
  3. We have heard about the protests Zomato’s employees are doing now and then. They stop working when they are not paid for how much they work. Also, their hikes and tips all depend on ratings given by customers, which may flip against them though the restaurants delay the order.

Key activities:

Marketing and Promotions: On Zomato,anyone can advertise; there are already 12,000 restaurants listed for advertisement here. It enables guaranteed customer growth with a performance tracker.

Technology and Development: There is so much needed to do in the backend, so Zomato has a talented set of programmers to develop a user-friendly page. With the growing need to attend to the data traffic Zomato must keep upgrading its system and team of developers.

Order fulfillment: Various stages are involved, from placing an order to delivering it. Zomato handles it with a user interface, backend development team, restaurant partner, and delivery personnel.

Unfavorable events

If only advertisement helps a business gain customers and its quality could be poor, then the traffic generated through it will fade out as time passes.

If any of the processes do not work correctly, order fulfillment will be delayed, eventually leading to negative feedback.

Value Propositions:

The company provides a hassle-free delivery experience, a user-friendly payment platform, and no restriction on orders, and brings all of them under one roof.

Unfavorable events

As discussed earlier, if there is any technical flaw in any area, the total experience seems unfavorable.

Key Resources:

The essential resources include food delivery partners, customers, and restaurant owners to the user-friendly interface.

Unfavorable events

While placing orders, many expenses are associated, such as commission costs, taxes, packing fees, delivery fees, and other external factors like weather conditions; customer traffic also affects the business and resources.

Customer relation:

They have a dedicated page in the app and website to enhance customer relations. There is an option to

1.      submit the feedback

2.      Report a safety emergency

3.      Live support with the live order.

While there has always been positive feedback with customer relations, there have been incidents where the executive can fail to understand the issues with food if they are native and local to that area alone.

While we discussed the most critical business segment models, we came to discuss the Revenue and cost driver of the business and whether it will help in the long run.

Revenue driver:

Partnership with restaurants

Zomato establishes partnerships with restaurants with commission charges and applies delivery and packing charges.

Can Zomato sustain this for revenue in the long run?

1. Let us take an example of a Zomato bill a person must pay if he needs delivery from a nearby restaurant.

Food (includes 25-28%) commission500

While if the same person can go to a nearby restaurant for good, he will have to pay Rs.300 to 350, which is almost a 50 % reduction in spending. Nowadays, people are aware of this and opt to go out and eat.

2.Compromise on food quality/quantity to recover the profit from commission charges lets the restaurant owner lose the trust they have earned from customers, leading to fewer footfalls and orders in the future.

3.HYPERPURE outlets are not abundant in an area, making it a less preferred option for restaurant owners.

While we can see how the long-run revenue of Zomato is affected by these factors, let us look at its cost.

Will it be able to control its expenses?


If the food delivery app is used as SaaS, it takes less to maintain it. As it is once deployed, there are great features to upgrade the business. With a vast backend team and office space, Zomato can pull this off easily.


The company has 23 + offices worldwide and spends much on administrative and office expenses.


  • Zomato has a well-established business model and knows how to do business.
  • While the customers can bear occasional spikes in charges for food and delivery, Zomato will not continue to prevent a dent in the wallet.
  • Unfettered competition exists in the market due to the ease of opening an online food business in the app, dramatically increasing listed restaurants.
  • No matter how much technology makes life more accessible, the humane experience is lost when you do not dine outside. The restaurant spends heavily on themes and ambiance, which isn’t addressed in the case of online ordering.
  • Above all that, people are becoming more health conscious; thus, they hit gyms frequently and reduce the habit of eating outside food. Nevertheless, the demand for restaurant food is going to continue.

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Finance World

Why Muthoot Finance is not affected by the small cap and mid cap fall?



This week, if you’ve been keeping an eye on the stock market, you might’ve noticed something unusual. While the small cap and mid cap markets took a serious dive, Muthoot Finance seemed to just avoid it, falling by a mere 2%. So, what’s their secret?

What is the business of Muthoot Finance?

First up, Muthoot Finance has a strong foothold in gold loans. Now, why does this matter? Well, when other investments seem risky, people tend to fall back on gold because it’s considered a safer bet. With gold prices staying high, Muthoot’s gold loan business is like a stable ship in a stormy sea.

Muthoot Finance target price by Kotak

Kotak Institutional Equities is pretty optimistic about Muthoot, recommending a “buy” with a target of Rs 1,500. They think Muthoot is in a prime spot to grab a bigger slice of the gold loan market. Plus, with some Non-Banking Financial Companies (NBFCs) hitting a rough patch, Muthoot has a clear ground to expand and grow further. Unlike NBFC, Muthoot has a strong ground presence with offices and branches, they have physical repo with their customers, unlike NBFC who operate from AC offices.

New Friends and New Frontiers

Muthoot isn’t just sitting pretty with its gold loans; it’s also making moves. It teamed up with Evfin to finance electric two-wheelers across India. And there’s more – Muthoot FinCorp has brought Veefin Solutions on board to kick off supply chain finance operations. This means they’re planning to lend a hand to small and medium businesses, helping them keep the wheels turning. So, its a great news that Muthoot is expanding into fields that are not dependent on gold loans alone.

Spreading Their Wings

Muthoot Microfin, a part of the Muthoot Group, is pushing into new territories too. They’ve just set foot in Telangana and have their sights set on Andhra Pradesh next. This move is about bringing more people into the financial fold, especially in places where banking services might be hard to come by. This gives an edge to Muthoot over banks and NBFC.

Are you wondering whether to invest in Muthoot Finance or Manappuram Gold? Take a look at this:

So, What’s the Deal?

While the market’s mood swings have sent some companies into a pit, Muthoot Finance has managed to stay stable. Thanks to its focus on gold loans, strategic partnerships, and expansion plans, it’s not just surviving; it’s set to thrive. So, while the rest of the market might be catching its breath, Muthoot is marching on, steady as ever.

Keep following us for more such latest news on TradeAlone.

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Finance World

Infibeam Avenues Ltd expands into the US Market with an Acquisition



Hello, digital pioneers and fintech enthusiasts! Let’s dive into a groundbreaking announcement for Infibeam. Infibeam Avenues Ltd, an AI-powered financial technology, is embarking on an exciting journey by acquiring a 20% stake in XDuce. XDuce is a mastermind in enterprise Application and AI development based in the United States. This bold move involves an investment of USD 10 million. This also marks a significant milestone in Infibeam Avenues Ltd’s global expansion narrative.

XDuce: A Hub of Innovation

Nestled in the heart of New Jersey, XDuce boasts a team of over 150 software developers. They’re a team behind the curtain for marquee clients like Bank of America and Morgan Stanley, to name a few. XDuce’s expertise in business application implementations and transformation is nothing short of legendary in the financial and insurance sectors of North America.

A Fusion of Giants

So, what happens when Infibeam Avenues Ltd and XDuce comes together? Infibeam Avenues Ltd wants to merge it’s AI Solutions and CCAvenue Payments business into the network that XDuce has built. This collaboration is about expanding business footprints, revolutionizing how AI-driven technologies are employed in fraud detection, authentication, and risk identification in the financial sector of the US.

Redefining Financial Technology

Imagine a world where transaction fraud is no longer a looming threat, thanks to state-of-the-art AI technologies. That’s the vision Mr. Jay Dave, CEO of XDuce, and Mr. Rajesh Kumar SA, CEO of Phronetic.AI, share. By integrating PhroneticAI abilities with XDuce’s solutions, they will offer businesses and consumers in the US with security and efficiency.

The Road Ahead

According to Mr. Vishwas Patel, Joint Managing Director of Infibeam Avenues Ltd, international business currently contributes less than 10% to the company’s total revenue. But with strategic moves like this, they’re aiming for international business to soar to 30% of total revenue in the coming years.

Infibeam Avenues Ltd at a Glance

Infibeam Avenues Ltd is at the forefront of offering digital payment solutions and enterprise software platforms across the globe. With a transaction worth INR 4.5 trillion (US$ 54 billion) processed in FY23, and a client base of over 10 million. Spread across digital payments and enterprise software platforms, they’re leading digital revolution.

Wrapping Up

The strategic investment in XDuce is a bold step towards Infibeam Avenues Ltd’s vision of global expansion and innovation.

Stay tuned with Tradealone, as we continue to follow this exciting journey of Infibeam Avenues Ltd. Stock price for Infibeam closed 7% up today. We also see a continues profit growth for Infibeam Avenues over the past 4 years. Although, we cant recommend a buy or sell call for the stock, however we feel this stock deserves your attention.

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Finance World

Satin Creditcare Expands its Reach by entering Telangana and Andhra Pradesh, stock has doubled so far this year



In a country where financial inclusion remains a major yet challenging goal, the expansion of services to underbanked regions marks a significant step forward. Satin Creditcare Network Limited (SCNL), a leading name in microfinance, announces its strategic entry into Telangana and Andhra Pradesh. This move not only amplifies SCNL’s presence to 26 states and union territories across India but also underlines its commitment to empowering the economically marginalized communities with vital financial services.

A Leap Towards Nationwide Financial Inclusion: SCNL’s mission to drive financial inclusion is more than just a business expansion; it’s a pledge to reach the unreached. The opening of two new branches in Telangana (Warangal and Huzurabad) and one in Kadiri, Andhra Pradesh, is a testament to SCNL’s dedication to making financial services accessible to all, especially in rural and semi-urban areas where banking facilities are scarce.

Why Telangana and Andhra Pradesh?

The choice of Telangana and Andhra Pradesh for SCNL’s latest expansion is strategic. Both states have shown promising economic growth yet house significant populations that lack access to basic financial services. By stepping into these states, SCNL aims to fill this gap, offering microfinance solutions that can serve as a catalyst for economic empowerment and sustainable development. Moreover, Telangana is a fast growing hub for Pharma industry as the state capital Hyderabad leads the way.

SCNL’s Blueprint for Empowerment

SCNL’s approach to empowerment through financial inclusion is holistic. Focused on rural India, with 76% of its operations dedicated to rural communities across 97,000 villages, SCNL is not just providing financial services but is also contributing to the rural economy’s growth. This expansion is a stride towards enabling access to credit for the underserved, thereby fostering an environment of economic resilience and growth.

A Message from the Leadership

Mr. HP Singh, Chairman cum Managing Director of SCNL, remarks, “Our expansion into Telangana and Andhra Pradesh is a significant milestone in our journey towards a financially inclusive India. It’s not merely about increasing our geographical footprint; it’s about touching lives, empowering the marginalized, and contributing to the nation’s economic fabric. We’re here to make a difference, one individual, one community at a time.”

Ashirvad Microfinance is a fast growing company as well. Check it out if you are interested.

Beyond Expansion – A Look at SCNL’s Innovations

SCNL’s innovations extend beyond traditional microfinance. The institution’s portfolio includes loans to MSMEs, affordable housing loans through its subsidiary Satin Housing Finance Limited (SHFL), and the commencement of MSME business through Satin Finserv Limited (SFL). These initiatives demonstrate SCNL’s commitment to diversifying financial solutions that cater to various needs of the underserved.

The Road Ahead for SCNL

As SCNL carves new paths in Telangana and Andhra Pradesh, the future looks promising. This expansion is not just about growth but about deepening the impact of financial inclusion across India. With continued innovation and a steadfast commitment to its mission, SCNL is poised to create significant strides in empowering communities and fostering economic development across the country. Moreover, the stock price for Satin Creditcare has almost doubled in the last one year.

Conclusion: SCNL’s expansion into Telangana and Andhra Pradesh marks a new chapter in its mission to facilitate financial inclusion across India. By reaching out to the economically marginalized sections of society, SCNL strengthens its role as a catalyst for economic empowerment and sustainable development. As we watch this journey unfold, the prospects for a financially inclusive India appear brighter than ever. Despite that we do not see any positive signs from the revenue and profit growth of the company over the last 5 years. Thus, we feel that investors must be cautious while investing here.

Remember that microfinance companies also face competitions from the major banks. However, as this move is towards uncharted regions of Telangana and Andhra, we do not think that the banks would pose any risk to Satin Creditcare.

Call-to-Action: We invite you to join the conversation: How do you think SCNL’s expansion will impact financial inclusion in Telangana and Andhra Pradesh? Share your thoughts and insights in the comments below. Let’s discuss how financial empowerment can transform lives and communities. Also, please follow Tradealone for more such latest updates.

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