Zomato Makes History as the First Indian Startup to Enter Sensex 30

Foodtech pioneer Zomato has etched its name by becoming the first Indian startup to secure a spot in the Bombay Stock Exchange (BSE) Sensex 30, replacing JSW Steel Limited in the benchmark index of India’s top 30 companies.

The inclusion follows Zomato’s impressive performance over the past year, which has captivated investors and analysts alike. The company’s stock has witnessed a stellar 38% surge in the past six months, an astounding 124.79% ywhich has capturedte, and a remarkable 114.29% growth over the last year.

Market Movement and Financial Performance

On the first trading day post-inclusion, Zomato’s stock experienced a 3.15% dip, closing at ₹278.70 on the Bombay Stock Exchange. Despite the slight decline, the company’s market capitalization stands robust at ₹2.68 lakh crore (approximately $31.9 billion).

Zomato reported impressive growth during the second quarter of the ongoing fiscal year, recording a 68.5% quarter-on-quarter increase in operating revenue to ₹4,799 crore, compared to ₹2,848 crore in Q2 FY24. The company also posted a 4.8x rise in net profit, reaching ₹176 crore.

In comparison, Swiggy, Zomato’s key competitor, reported revenue of ₹3,601 crore and a net loss of ₹625 crore during the same period. Swiggy’s market capitalization currently stands at ₹1.32 lakh crore (around $15.8 billion).

Recent Fundraise and Strategic Moves

Last month, Zomato secured $1 billion in funding from qualified institutional investors (QIIs), reinforcing its financial position and paving the way for future investments. The fresh capital further strengthens Zomato’s ability to push boundaries, explore innovative opportunities, and maintain its competitive edge.

Zomato’s inclusion in the Sensex 30 is a testament to its bold, high-risk strategy, characterized by strategic acquisitions like Blinkit, a forward-thinking approach to communication, and investments in emerging startups. These moves have justified the company’s lofty valuations and high investor expectations.

What Lies Ahead for Zomato?

Zomato’s entry into the Sensex 30 is a significant milestone, marking its transition from a startup to a market leader. This achievement symbolizes the growing influence of tech-based companies in India’s financial landscape. As the firm continues to innovate and expand, the focus shifts to what’s next for the food tech giant.

With a strong foundation and investors’ confidence, Zomato is well-positioned to explore new opportunities and lead India’s startup ecosystem into its next growth phase.