Zomato Successfully Leveraged Digital Marketing To Generate Funding

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zomato_company_logoAbout Zomato

Zomato is a global restaurant search and discovery service founded in 2008 by Deepinder Goyal and Pankaj Chaddah. It currently operates in 22 countries, including India, Australia and North America. It features restaurant information such as scanned menus and photos sourced by Local Street teams, as well as user reviews and ratings. The company also provides cashless payment, online ordering, white-label apps, table reservation, and point-of-sale systems as a part of digital marketing move.

Objectives of Zomato

  • Helping people discover great places around them

Zomato team visits every restaurant once every three months to ensure data is fresh. Zomato’s vast community of food lovers share their reviews and photos, so we have all that we need to make an informed choice.

  • Building amazing experiences around dining

Starting with information for over 1 million restaurants (and counting) globally, Zomato is making dining smoother and more enjoyable with services like online ordering, cashless payments, and table reservations.

  • Enabling restaurants to create amazing experiences

With dedicated engagement and management tools, Zomato is enabling restaurants to spend more time focusing on food itself, which translates directly to better dining experiences.

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Strategies Adopted by Zomato

Zomato works with keen interest on various strategies to achieve their goal. It includes

Financial Strategy: To increase their fund and revenue

Marketing Strategy: To tap their customers from across the globe

Growth Strategy: To grow continuously and increase their customers and page traffic

Globalization Strategy: To expand themselves across the whole globe as a leading service provider

Marketing Strategy:

Featured and user-friendly website

Global mobile app

Focusing on digital marketing channels for potential customers

Acquire the competitors: To be the largest resource in food supply market, Zomato bought urban spoon for $52 million to enter US, Canada and Australia

Simpler review and rating system

Integrating other tools in their marketing strategy has given them wonderful hike in their business.

Sales promotion:  Coupons and price-offs

Direct Marketing:  Phone call and direct mail

Implementation by Zomato

Zomato aims to be a place where the foodies hangout. The company has spread in 20 countries with its headquarter in New Delhi, India providing service to over 35 million values customers per month. The list of registered restaurants on the website has increased to 384,100 till March 2015.

Facebook, Twitter and Pinterest are the 3 main platforms which made the base for the success of Zomato with a deep presence among their customers. Other than that, Zomato has extensively invested a lot over SMO, SEO and has worked a lot to improve its UI and make it more user interactive. Side by side with a goal to branch globally, they also invest much on TV ads to bombinate Zomato.

Pankaj Chaddah, the co-founder of Zomato agreed, “ads on the mobile app have changed the revenue game for them”. More than 50% of their total traffic comes from their mobile apps. “Using location-based services to target ads around a consumer’s physical location helps make this decision easier” said Chaddah.

Sanjeev Bikchandani, co-founder of Info Edge and Zomato’s largest shareholder said, “the firm will focus on segments such as online food ordering, restaurant booking, subscription-based services and billing inside of restaurants”.

Zomato uses different platforms to engage their customers with them.



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There is a huge engagement of customers on Facebook. Zomato has more than 600k strong Facebook community.



Twitter is a place where Zomato is sparkling. It has more than 114 k followers there. Used as a conversation platform with the customers, Zomato is doing a great job in engaging their customers on their page. They answers all the queries raised over the platform by the customers.

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Sharing and updating with all the latest updates is a key point for any organization. Zomato uses their blog as their mouthpiece to share all the latest updates.


The platform shares the food experience with great content to attract their customers. The company needs to do a lot of job to make its followers on this platform which will certainly work in their promotion.

Results Achieved by Zomato


In August 2010, Zomato got its first round of funding of $1 million from Info Edge, India. And in September 2011, got its second round of funding of $3.5 million from the same financier. Next year Zomato upraised its third round of another $2.5 million from the same investor and again in early 2013, Info Edge funded fourth round worth $10 million which gives them a 57.9% stake in Zomato.

Seeing the future and growth of Zomato, Sequoia Capital and Info Edge, India in November 2013 funded Zomato with $37million. Info Edge now owned 50.1% of Zomato on an investment of INR 143crores. The total funding raised by Zomato till November 2013 stands at $53.5 million.

In November 2014, Zomato came up with a fresh round of funding of $60 million at a post-money valuation of ~US$660 million. This round of funding was jointly headed by Info Edge India Limited and VY Capital, with involvement from Sequoia Capital. This made a total funding of over US$113 million for Zomato.

Recently in a fresh round of funding in April 2015, Info Edge, India has invested an amount of Rs 155 crore in Zomato.

Info Edge said in a statement “Being Info Edge’s fair share of Zomato’s recent fund raises of USD 50 million”. Upon completion of the allotment of shares, Info Edge’s aggregate investment in Zomato will be about Rs 484 crore.

As the website was launched, it became popular soon and expanded rapidly, covering many important regions of India including Kolkata, Mumbai, Bengaluru and Pune by the year 2010. Apart from being a service provider within India, Zomato.com now has branched to overseas in the regions of Philippines, New Zealand, Qatar, South Africa, Sri Lanka, the United Arab Emirates and the UK as well.

The website covers a list of over 1,20,000 restaurants across all these regions catering to more than 15 million customers worldwide. With its headquarter in New Delhi, Zomato.com is providing career opportunity to over 350 employees all across the globe.


  • Great use of social networking sites of reach out customers.
  • Implementation of good digital marketing strategy can help a company in faster growth.

Consumers often make quick decisions based on the result of Smartphone searches.

Zomato sends out messages with the right kind of image.

Zomato not only preaches to be different, but they have also proved it with their work. They deliver the same message but in a new avatar. This makes their social media updates unique, even though the concept is nothing new.

For a marketing strategy to be successful one should know how to engage customers. Zomato’s social media posts are always simple sans industry jargons. It helps them cater to all kind of audience. This is the main reason that their posts are truly engaging.

One should be clear about who they are catering to.

Credits: Zomato.com, Wikipedia, techsu.com, Forbesindia.com

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