Prestige Institute of Management and

Research, Indore
(An Autonomous Institution Established in 1994, Accredited Twice
Consecutively with Grade ‘A’ NAAC (UGC) ISO 9001: 2008 Certified Institute,
AICTE / UGC Approved Programs affiliated to DAVV, Indore)

(Session 2017-2019)

Summer Internship
Report On
“ZOMATO”

Guided by: Submitted by:

Prof. Radhika Sahni Muskan Kataria

BBA 5th Semester

Roll no. 160229

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 PRESTIGE INSTITUTE OF MANAGEMENT AND
RESEARCH
(An Autonomous Institution Established in 1994 &Accredited with ‘A’ grade by NACC(UGC))
(Affiliated to Devi Ahilya University & Programs are approved by State Government)

Date

Certificate of Faculty Mentor

This is to certify that Ms. Muskan Kataria has completed her SUMMER CORPORATE
RELATION PROGRAMME-2018 under my supervision.

Her conduct was good and I wish her best luck for her future endeavor.

Signature

Name of Faculty Mentor:- Radhika Sahni


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 Acknowledgement

I take this opportunity to express my deepest and sincere gratitude to my guide Ms.
Radhika Sahni, Professor, Prestige Institiute Of Management & Research, Indore for her
insightful advice, motivating suggestions, invaluable guidance, help and support in
successful completion of this report and also for her constant encouragement and advice.

I express my deep gratitude to , Dr. Manish Joshi, faculty Marketing, Program Coordinator
and Corporate Trainer ,Prestige Institute of Manangement and Research Indore for his
regular support, co-operation, and co-ordination.

I also express my deep gratitude to , Dr. R. K. Sharma , Director, Prestige Institute Of

Management & Research, Indore for all the help they provided for the completion of report.
The in-time facilities provided by the department throughout the Bachelors program are also
equally acknowledgeable.

I would like to convey my thanks to the teaching and non teaching staff of the Institute, for
their invaluable help and support throughout the period of Bachelors Degree. I am also
grateful to all my classmates for their help, encouragement and invaluable suggestions.
Finally, yet more importantly, I would like to express my deep appreciation to my
grandparents, parents, sister and brother for their perpetual support and encouragement.

Muskan Kataria
BBA 5th Semester
Scholar No. - 21110108598

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 Index

S. No. Particulars Page No.

1 Cover Page 1
2 Certificate Of Faculty Mentor 2
3 Acknowledgement 3
4 Title of Summer Corporate Relation Program 5
5 Summer Corporate Relation Program Option 5
Selected
6 Objective of Selecting Summer Corporate Relation 6
Program
7 Detailed Information of the Organization selected 7
8 Duration of Summer Corporate Relation Program 7
9 Attendance Sheet 8
10 Start Up under study 9
11 Nature of Business 10
12 Innovative Features of the Startup/ Idea 11
13 Steps to Startup 12-13
14 Business Model 14-18
15 SWOT Analysis 19-21
16 Reasons for the Success of Startup 22
17 Conclusion 23
18 Suggestions 24-25
19 References 26

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Summer Corporate Relation Program Option Selected:

Study of Existing Startup :-

ZOMATO : An Indian StartUp Acquiring the World

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Objective of selecting Summer Corporate Relation Program

• To learn to multi-task
• To develop self-learning skills
• To learn to take failure in our stride
• To learn to trust our instincts

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Detailed Information of the Organization Selected

Particulars Details

Name of the organisation Zomato™ Media Pvt Ltd.

Address(headquarters) Gurgaon , Haryana , India

Name of authorized person Mr.Deepinder Goyal

Contact no. +91 88-0060-0228

Website www.zomato.com

Duration 45 Days

KEY EXECUTIVES
Deepinder Goyal
CEO/Co-Founder

Sameer Maheshwary
Chief Financial Officer

Mukund Kulashekaran
Chief Business Officer

Mohit Gupta
CEO:Food Delivery

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 ATTENDANCE SHEET

S.No. Date Time Work Signature Signature Remarks

Progress of Student of Faculty if any
of SCRP Mentor
2018

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Z O M AT O : A n
Indian Startup
Acquiring the
World



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NATURE OF BUSINESS
Company Profile
Sector: Consumer Discretionary
Industry: Gaming, Lodging & Restaurants
Sub-Industry: Restaurants

Zomato Media Pvt. Ltd. provides an an online food and nightlife guide service. The
Company operates a website and mobile app that provides in-depth information including
menu, contact details, pictures, directions, ratings, and reviews for a multitude of
restaurants. Zomato Media extends its services throughout global networks.

Founded in 2008, Zomato is a leading platform for restaurant search & discovery, online
food ordering, and restaurant table reservations. The company was founded by Deepinder
Goyal and Pankaj Chaddah and is headquartered in Gurgaon (officially Gurugram).

Featuring a robust review system, Zomato allows foodies to find the best meals and
restaurants in their neighborhood. A notable aspect about Zomato is that it is among the few
companies that have gone global after starting operations in India. Zomato currently
features more than 1 million restaurants globally on its platform.

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IDEA OF STARTUP
One day while working at Bain and Company, Deepinder noticed people queuing up in the
canteen every day trying to look for menus to order food and that’s when the idea struck
into his mind that what if we could access these menus online.

The users can use this website that will provide full information about restaurants and
events (e.g. menu cards, contact details, pictures, directions, rating, and reviews) to the
users.

One can also get an opinion about the restaurants through the reviews written by people
who have already visited the place. Then Deepender Goyal and Pankaj Chaddah worked on
the idea and started Foodiebay in 2008 while continuing working in Bains.

Both founders used to get together on weekends and worked for Foodiebay. They left Bains
and company once the business reached 4 different cities and they had few clients in hand.
Later they changed the name to Zomato.

INNOVATIVE FEATURES OF ZOMATO ARE:

1. User Experience Design: Zomato is all about ease of searching. Currently, the criteria
they follow and the filters they have added generate relevant results and is user friendly at
the same time. When you search a restaurant, Zomato also gives you directions to reach
there from your current location with the help of integrated maps.
2. User Engagement: User reviews and ratings makes the website engaging. What better
way to promote a restaurant then asking its visitors to share their experience.
3. SEO Friendly: The website is search engine optimized, be it different pages, URL or
meta tags everything is planned keeping search results in mind.
4. Additional sources of revenue: Zomato encourages advertisement options in the form
of banner Ads and there are other ways through which Zomato earns revenue.


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STEPS TO START UP

In November 2010 Foodiebay renamed as Zomato because did not want to restrict
themselves to Food business so the founders came up with new name Zomato.

In 2011 Zomato launched in Pune, Bangalore, Chennai, Hyderabad, and Ahmedabad. In the
same year, Zomato launched its mobile application for Android and iOS.

In 2012 company launched a print version of the website in association with Citi bank
“Citibank Zomato Restaurant Guide” and it has been continued every year after that. In the
same year, Zomato expanded overseas to UAE, Sri Lanka, Qatar, and the UK etc. and to
New Zealand, Turkey, Brazil in next year.

After that Zomato is expanding continuously to the global market and in India also. Zomato
is ranking at 523 number by Alexa, a web traffic data analysis company owned Amazon.
Zomato claims to have 90 million monthly visits on its website and mobile application.

FUNDING

Between 2010 to 2013 company raised around 17 million dollars from an investment
company Info Edge.

Then in Second round of investment in 2014 Zomato raised 60 million dollars from Info
Edge and Vy capitals.

In 2015 company raised another 110 million dollars.

In total Zomato has raised around 225 million dollars funding from four investor Info Edge,
Vy Capitals, Sequoia India, and Temasek Holdings.

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ACQUISITIONS
In July 2014 Zomato acquired Menu-Mania for an undisclosed amount and after that
company also acquired Lunchtime.cz from the Czech Republic and Obedovat.sk
from Slovakia.

In April 2015 company acquired a Delhi based company called MapleGragh and a US based
table reservation company Nextable.


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BUSINESS MODEL
Advertising for restaurants is the key revenue generator for Zomato. The company also
launched a new food ordering app from which you can order food from near by restaurants.
Zomato is currently operating in 24 countries across the world with more than 2000
employees from 32 different nationalities with a motive of building amazing dining
experience.

Financial Model

1. Fund Raising
Zomato has received investments worth $443.8 million through 10 rounds of funding. Top
investors include Ant Financial, Sequoia Capital, Temasek Holdings, Info Edge, and Vy
Capital.

2. Fund Allocation And Utilisation

Mostly they use these funds to strengthen its aggressive International rollout and invest in
newer segments like online food delivery and cashlesspayments among others. It's worth
noting that ZOMATO had spent most of its $60 million funding on the UrbanSpoon
acquisition, which it had acquired for $52 million.

In February 2015, ZOMATO allocated $50 million (Rs 300 crore) to launch an online food
ordering business, taking on existing players like FoodPanda and TinyOwl among others.

ZOMATO spent Rs. 76 lakh on the delivery of food orders in FY 2016.It also spent Rs.44.1
crore on advertising and sales promotion in FY 2016 which is double of Rs.22.3 crore from
previous year.

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Technological Model

As ZOMATO is India’s best online restaurant discovery guide it use Superior

technology in the form of :

• Featured and user friendly website.

• Global personalised Mobile app.

• Digital marketing channels .

• Business app for table management, POS system, online ordering.

ZOMATO app review:

• They have more than 5 million download of their app.

• The ZOMATO app offers a much simpler user interface, in line with the redesign of the
ZOMATO website, with the home screen offering large swappable images of nearby
restaurants that lead to their respective listings, in addition to options to browse
restaurants and search for them by entering keywords for name, location, cuisine or dish.

• The app is available in the App Store and Google play store.

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Marketing Model

The key factor for ZOMATO is its marketing strategy and its featured & user friendly
website. They also have a Global mobile application for Google Android operating system,
Windows phone, IOS and Blackberry devices as people using smart phones are increasing
day by day and people are more likely to do the search from their mobile.

• Marketing tools:
I. Online Tools: Search Engine Optimisation (SEO), Search Engine Marketing (SEM).

II. Offline Tools: Attractive, colourful and good Quality pamphlets, Word of mouth, OOH,
B2B Marketing, Press etc.

III. Broadcasting Tool: Occasionally use TV advertising during high activity period like
DIWALI, NEW YEAR & other festivals.

IV. Social Media: ZOMATO uses different platforms to engage user with them.As on
August, 2016 -

A. ZOMATO has more than 600k strong Facebook community.

B. 1288337 likes on Facebook.

C. 309k Followers in Twitter.

D. ZOMATO use blog as a mouthpiece to share & update all latest Updates.

E. Share the food experience with 457 followers in Pinterest with great content to attract
customers.

F. Share foodie photographs in Instagram by using #ZOMATO and it has 39.9 k

followers.

V. Direct Marketing:

A. SMS: 6 sms per day for one month to 6 lakh unique customer at first stage.

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B. Direct Mail: Effectively reached corporate in bulk & professional employees which are
primary target.

C. Sales Promotion: Coupon and price offers.

D. Simple review and rating systems

E. Print Media:City Bank ZOMATO restaurant guide 2012.

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Revenue Model

Zomato open with only listing restaurants Static menu and getting reviews from users about
the food served and their experience.

This created a atmosphere for consumers and food point and Advertising and sponsored
listing of restaurant are the main revenue earning plan. Zomato business revenue model.

Zomato also started with online food ordering and delivery but its only available in Top
metro cities and premium restaurants and Zomato charges from 10–15 % for online ordering
and extra charges on delivery by Zomato.

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SWOT Analysis

Strengths

First mover advantage – One of the best competitive advantages of Zomato is that it is
the first mover in many of the nations where it is establishing itself. Directories and other
forms of restaurant ratings might exist. But as an app Zomato is excellent and many
countries (like India) have loved the usability of the Zomato app.

Evergreen industry – The restaurant industry is an evergreen industry. Sure, there may be
recessions and other downturns which might affect the industry. But overall, this industry is
going to stick around at all times and is only going to grow with rising disposable income.

Fast Expansion – It is appreciative that Zomato has expanded so fast. It is already in 24

countries and is expanding year on year.

Fantastic design of the app – Zomato has regularly won awards for its app design and
for its user-friendliness. The App design is fantastic and it helps you discover restaurants
nearby as well as in an area you are going to visit.

Excellent funding available – Zomato has picked multiple rounds of funding over the
years and because it is now so well established in many countries, there is a lot of funding
available for the app.

Brand Equity – Zomato is valued at $1.4 billion within 7 years of inception. That says
volumes about the popularity and love for the brand.

Fantastic marketing – You can find Zomato working for its own marketing offline as
well as online. Its print ads are hilarious and make an immediate connect with the audience.
It is strong on Social media marketing and uses a combination of ATL and BTL strategies to
attract and retain customers.
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Weakness

Security issues for the app – A major issue for Zomato in the past has been some
security issues due to which the app was hacked and at least 17 million users data was
copied. Such security issues are a nightmare for internet companies.

Still a lot of expansion required – Considering that the app has established in 24
countries, there is good expansion. But at the same time, the app has been started 7 years
back and with the amount of funding available for Zomato, the expansion can be much
faster. It is allowing other services to establish themselves in this niche before it reaches
their country.

Word of mouth and Facebook check-ins – Besides such apps, in many places word of
mouth still trumps apps and at the same time, Facebook check-ins are a strong competitor
wherein people might not need Zomato. Thus, it is an app for early adopters but definitely
not for laggards.

Opportunities

Further expansion – The number 1 opportunity for Zomato is to expand to more

countries and establish its base faster. Service industry has a major problem that services
can be copied very fast and very easily. As a result, it is critical for Zomato to establish and
expand itself faster.
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Cloud restaurants – Zomato is coming up with the concept of Cloud restaurants wherein
restaurants will not have to get a physical space to actually sell their food products. Instead,
they can sell from Zomato.

Threats

Google’s schema module – One of the major threats Zomato faces right now is the
Schema module of Google wherein google locations itself is getting in restaurant
recommendations. Even google homepage shows the google maps page where you can
search for restaurants within your locality. Google being such a big brand, zomato faces
huge competition from them.

Market followers and challengers – In the service industry, it is very easy to replicate
the success of another service product or offering. Similarly, marketing followers and
challengers can slowly take away the market share of Zomato.

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REASONS FOR THE SUCCESS OF ZOMATO

A Recalibrated Ad Strategy
In mid-2016, Zomato redesigned its ad serving product to drive more value to users as well
as merchants. Thus, it stopped accepting advertising from low-rated restaurants. The new
product provided smarter targeting, simpler interface and greater visibility to the well-rated
advertisers. As per Zomato’s claims, this product rolled out globally by September 2016
helped its merchants realise a 3x increase in value from advertising on Zomato.

Launching Zomato Infrastructure Services

The platform’s new initiative for cloud kitchen services through Zomato Infrastructure
Services and efforts to scale up food ordering delivery along with table reservations gave
the company an 8x surge in food ordering revenues.

Table Reservations
The Table Reservations product was launched in July 2016 where users could book tables
via the Zomato app and website.Currently, Zomato offers the table reservation option across
24,000 restaurants in 12 cities. In the month of March, it claims to have seated 600K guests
via the table reservations product.

Zomato Gold
In March 2017. it also launched a premium membership programme, Zomato Gold, in
Lisbon and Dubai. The programme rolled out in India around June with Delhi, Mumbai and
Bengaluru being the initial stops.For this, it has partnered with 200+ restaurants, bars, and
lounges, so far.

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CONCLUSION
Zomato is used by consumers globally to discover, rate, and review restaurants, as well as
create their own personal networks of fellow food enthusiasts for trusted recommendations.

In addition to restaurant search and discovery, Zomato has expanded its offering to include
transactions – Online Ordering, Table Reservations, and a Point-of-Sale system, creating
cutting-edge technology to connect restaurant businesses and customers in ways that will
revolutionise the restaurant industry.

In the beginning they did not concentrate on making money but as the website geared up,
they saw business prospects in it. They then modeled it in a way that their hardwork pays off
in the form of monetary benefit.

With 62.5 million registered users, Zomato is a platform where one can get in touch with
foodies around the world. Taking advantage of this, big restaurants place their
advertisements on this website and in turn Zomato earns revenue.

Another way in which this portal generates revenue is by the sale of tickets to food festivals
and culinary events.

They also have clients who seek their advice in making their business better, which is also a
part of their business model.

With the launch of its cashless transaction, they have made it easy for customers to pay their
bills without carrying cash, and in turn they benefit from the commissions they are entitled
to.

The implementation of new ideas is one of the many things which have paved the path to
success for them.

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SUGGESTIONS

ZOMATO is basically an online food related guidebook. They can add some new features
which will give them competitive advantage to be successful in doing business.Some of
these features can be :-

• Adding feature in App: ZOMATO doesn’t use customized app for each target market
which is troublesome for users. They should customize their website and app for each
targeted customer segment. Such as there are some people in our country who do not
understand English properly. For this reason, ZOMATO can add HINDI or other regional
languages feature so that all people understand and get a chance to order meal from
ZOMATO easily.

• Senior Citizen’s Meal: In our country, senior citizens are not willing to go to
restaurants for their various health issues. And for this they are not getting the essence of
good meal. So, ZOMATO is going to offer them 10% discounts on every meal.

• Story Teller: They can add option where people can get chance to share their
experiences with ZOMATO in their website. After every month they select a winner
among those story tellers and will offer them a free meal. By this way, we will be able to
improve their service and offer the best to the customers.

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• Kids Meal: In recent times, the number of working women has increased. They have
limited time for family. Because of that, in Tiffin times their kids are not getting hygiene
meal. For this type of kids ZOMATO can offer healthy and light meals for them by tying
up with restaurants and convincing the school authority.

• Award to Customer: They may award the valued customer on how many times they
order food through ZOMATO after certain time.. Those customers whose no. of orders is
the highest will be awarded with a free meal.


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REFERENCES

https://en.wikipedia.org/wiki/Zomato

https://www.zomato.com/blog/category/company

http://dsim.in/blog/2015/04/14/zomato-an-indian-startup-acquiring-the-world/

http://buzz.iloveindia.com/the-inspiring-pathbreaking-success-story-of-zomato-
an-indian-startup-ruling-the-world.html

https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/zomato-ceo-
claims-100-million-in-annualised-revenue-run-rate-40-growth-in-last-2-months/
articleshow/63414145.cms

https://www.yosuccess.com/success-stories/zomato-success-story/

https://www.whizsky.com/2017/08/case-study-zomato-global-indian-company/

http://www.forbesindia.com/article/special/zomato-claims-profit/48175/1

https://inc42.com/buzz/zomato-financials-2017/

https://www.startupstories.in/stories/inspirational-stories/zomato-success-story-
inspiring-story-of-deepinder-goyal-and-pankaj-chaddah

https://www.digitalvidya.com/blog/zomato-an-indian-startup-acquiring-the-
world/

https://innov8.work/blog/swiggy-zomato-food-startups-in-india/

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