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Zomato Becomes First Indian Startup to Join Sensex 30

• ByStartupStory     |    December 23, 2024

Foodtech giant Zomato has etched its name in history by becoming the first Indian startup to be included in the Bombay Stock Exchange (BSE) Sensex 30, a benchmark index comprising India’s top 30 companies. The milestone comes as Zomato replaces JSW Steel Limited in the prestigious index.

Zomato’s addition to the Sensex reflects its strong performance and growing dominance in the Indian market. Over the past year, Zomato’s stock has gained 38% in the last six months, 124.79% year-to-date, and an impressive 114.29% over the previous year.

Despite this achievement, Zomato’s stock saw a dip on Monday, falling by 3.15% to Rs 278.70 (as of 12:28 PM) on the Bombay Stock Exchange. The company’s market capitalization currently stands at Rs 2.68 lakh crore (approximately $31.9 billion).

During the second quarter of the ongoing fiscal year, Zomato demonstrated remarkable financial performance, reporting a 68.5% quarter-on-quarter growth in operating revenue, which surged to Rs 4,799 crore from Rs 2,848 crore in Q2 FY24. The Gurugram-based company also recorded a 4.8X increase in net profit, reaching Rs 176 crore in the quarter ending September.

In comparison, Zomato’s closest competitor, Swiggy, posted revenue of Rs 3,601 crore and a net loss of Rs 625 crore during the same period. Swiggy’s stock is currently traded at Rs 592.8 per share, with a market capitalization of Rs 1,32,695 crore (around $15.8 billion).

Last month, Zomato secured $1 billion from qualified institutional investors (QIIs), bolstering its financial position and enabling future investments. The company has consistently pushed boundaries with initiatives like the acquisition of Blinkit, innovative communication strategies, and investments in other startups.

“The recent fundraise has also underscored its readiness to invest and invest big where it sees a need to do so,” an industry expert noted.

The inclusion in Sensex is seen as a significant validation of Zomato’s high-risk yet calculated approach to achieving growth. Analysts believe this milestone signifies a shift in how Indian startups are perceived in the stock market, further opening doors for tech-driven enterprises.

“The Sensex inclusion has seemed like a logical move for the pioneering tech firm, and the big question on everyone’s minds will surely be—what next?”

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