Zomato’s comeback story is built on sensible foundations

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The general wisdom is that people mellow out as they get older. When I was younger, I thought this meant that adults just kind of experience relatively duller or muted emotions, but as I’ve grown up, I realized it’s more a function of knowing that good and bad things all come and go.

If everything goes in – more or less – cycles, then a turnaround from whatever crisis you’re going through is just right around the corner. Similarly, the best times don’t last forever. We also become more self-reflective, and we’re able to better see the objective reasons for why things happen. All of this means we tend to become a bit more level-headed as we get older.

Similar reasons explain Zomato’s turnaround from making a loss to becoming profitable – its effective use of analytics and its prioritizing of profitability over growth (which could be said to be the “boring” or “mature” thing to do) have been the keys to its success.

Perhaps the tech industry as a whole is also becoming more mature. If that means fewer shocks and more sustainable growth and practices, I’ll happily take it.

Today we look at:

• Zomato’s comeback story
• AnyMind Group’s continued ascent
• Other newsy highlights such as Sea Group’s encouraging Q1 financials and a synthetic biotech startup’s US$15 million series A round

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Comeback stories rule, dude

Image credit: Timmy Loen

It’s currently a pretty dire time to be a Manchester United fan, but with a history replete with dramatic last-minute victories, I think I – and so many of my peers – could be forgiven for falling in love with the club when I was a kid.

Everyone loves a fighter that won’t give up, and that currently describes Zomato to a T.

• A low: A year after its IPO, Zomato’s share price dropped by over 60%, which was attributed to concerns over high valuations and the correction in growth stocks as interest rates started to rise. Investors were also underwhelmed by its US$568 million all-stock acquisition of quick commerce startup Blinkit, citing issues such as tight competition in the sector and significant cash burn.
• It ain’t over yet: Zomato managed to reverse its fortunes and posted its first profitable quarter in the quarter ended June 2023, only two years after its IPO. Additionally, over the past year, its stock price soared by more than 200%, peaking at an all-time high of 197 rupees (US$2.40) at the close of trading on May 3.
• How it did it: Advertising revenue has proven to be a key ingredient in Zomato’s recipe for profitability, while a substantial improvement in its quick commerce operations has also helped the firm’s turnaround.

Read more: From bust to boom: Zomato turns the tide

Pick Any number, they all seem to be trending up

Sneak peek of who you’ll meet on May 30

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