The recipe behind Zomato’s comeback

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Hello there,

I rarely pay attention to ads. In fact, if I search for something and see an ad as the first result, I almost always skip to the first “real” search result.

My aversion to ads certainly isn’t stopping platforms like Zomato (ZOMATO, NSE), the Indian food delivery giant, from expanding their advertising businesses.

As my colleague Samreen shares in this week’s featured story, a recent survey found that nearly 63% of respondents already advertised on Zomato’s platform in March 2024. This was up from 54% in September 2023.

The company’s success in attracting advertisers is but one of several factors that have driven its share price to all-time highs this month. Over the past year, it has gone up by more than 200%, outperforming the benchmark Nifty 50 index. This marks a big change from its initial performance after going public in 2021 – shares had plunged by over 60% in the year that followed.

Find out more about how Zomato engineered this remarkable comeback – and whether this is sustainable – in Samreen’s piece.

— Simon

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THE BIG STORY

From bust to boom: Zomato turns the tide
Ads revenue, the Blinkit acquisition, and data analysis have helped turn Zomato’s fortunes in a few months after the post-IPO crash

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3 Trends to keep an eye on

Hot stocks, earnings reports, restructuring, pressure from activist investors, and more.

1️⃣ Line Man Wongnai reiterates IPO plans : The CEO of the Thailand-based food delivery platform said the company plans to go public in 2025 on either a Thai or US exchange, adding that a dual listing was also possible.

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2 Eye-popping facts

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The one you didn’t see coming

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