July 19, 2024

Zomato’s Market Cap Surpasses $10 Billion Milestone

2 min read

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Gurugram-based food-delivery platform Zomato has achieved a significant milestone as its market capitalisation crossed the $10 billion mark. This achievement comes after the company’s shares surged more than 14% to reach a 52-week high of Rs 98.39. During its initial public offering in July 2021, Zomato was valued at $12 billion.

In a remarkable development, Zomato reported its first-ever consolidated quarterly net profit at Rs 2 crore. This positive outcome can be attributed to the higher order frequency from subscribers of its loyalty programme. It is worth noting that the company had reported a loss of Rs 186 crore in the same period last year.

Back in May, Zomato’s CEO, Deepinder Goyal, had confidently stated that the company would achieve profitability on a consolidated basis within the next four quarters. The recent surge in share prices and the achievement of a profitable quarter indicate that Zomato is well on its way to fulfilling this promise.

Shares of Info Edge, one of Zomato’s earliest investors, also experienced a significant boost, reaching a 52-week high. This positive momentum is a testament to the overall success and growth of the food-delivery industry in India.

While Zomato celebrates its profitable turn, its main rival Swiggy has faced valuation markdowns. Invesco, one of Swiggy’s investors, marked down its value by 33%. Similarly, Baron Capital Group, another investor, marked down its valuation of Swiggy by 34% to $7.1 billion. These markdowns highlight the challenges faced by Swiggy in comparison to Zomato’s impressive performance.

As Zomato continues to thrive and expand its market presence, it is clear that the company has established itself as a leader in the food-delivery industry. With its market capitalisation surpassing $10 billion, Zomato is poised for further growth and success in the coming years.

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