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Zomato Business Model Explained: How It Earns and Grows in India (2025 Update)

Nitesh
Zomato is one of India’s most popular food-tech companies. What began as a small website for checking restaurant menus has turned into a billion-dollar business connecting millions of people to food, groceries, and restaurants every day.

In this article, we’ll explore how Zomato makes money, its different business segments, and how much each one contributes to the company’s total revenue. All figures are based on FY2024–25 data.

🏁 The Journey of Zomato

Zomato was founded in 2008 by Deepinder Goyal and Pankaj Chaddah in Gurgaon. It started as a simple platform for checking restaurant menus and reviews, called Foodiebay.

By 2010, it rebranded to Zomato, expanded to major Indian cities, and later to international markets like UAE and Singapore.

The big turning point came in 2015, when Zomato entered the online food delivery business. From then, it grew rapidly, buying companies like Uber Eats India, Grofers (now Blinkit), and Hyperpure — each one adding a new layer to its ecosystem.

💼 Zomato’s Four Main Businesses

Zomato is no longer just about food delivery. Today, it runs four large business lines that together make it one of India’s most diverse tech companies.

🍛 1. Food Delivery (Zomato App)

This is Zomato’s most famous and oldest business. When you order food using the app, Zomato earns from:

Commission from restaurants (usually 18–25% of the order value)

Delivery charges from customers

Ads and promotion fees from restaurants


In FY2024–25, food delivery generated around ₹9,418 crore, about 46% of Zomato’s total revenue.

Though the growth rate has slowed, profitability has improved. Zomato now focuses on premium orders and better delivery efficiency

🏪 2. Blinkit (Quick Commerce)

Blinkit delivers groceries and household items in 10–20 minutes. Zomato acquired Blinkit in 2022, and it has now become its fastest-growing division.

In FY2024–25, Blinkit earned about ₹5,206 crore, roughly 26% of Zomato’s total revenue.

The company earns from:

Commissions on grocery sales

Delivery fees

Ads from brands


Blinkit’s growth rate is over 100% year-on-year, showing that quick commerce is becoming India’s next big retail trend

🧑‍🍳 3. Hyperpure (B2B Supply Business)

Hyperpure is a B2B (business-to-business) division that supplies groceries, vegetables, and kitchen materials directly to restaurants and cloud kitchens.

In FY2024–25, it contributed around ₹6,196 crore, or 31% of total revenue.

Zomato’s big advantage is that Hyperpure supports the same restaurants that depend on Zomato for food delivery. This builds loyalty and gives Zomato more control over the entire food supply chain.


🎭 4. Going Out (Dining, Events & Ticketing)

This part of Zomato helps users book tables, discover restaurants, and attend food-related events.

It’s smaller compared to other businesses, with revenue of around ₹737 crore in FY2024–25 (around 5% share). But it strengthens the brand’s offline presence and community engagement.

📊 Zomato Revenue Breakdown FY2024–25

Segment Revenue (₹ crore) Share of Total

Food Delivery 9,418 46%
Hyperpure (B2B) 6,196 31%
Blinkit (Quick Commerce) 5,206 26%
Going Out 737 5%
Others 100 <1%
Total Revenue 20,243 crore 100%


> Source: Zomato Annual Report FY25, Medianama, BusinessUpturn



🧁 Summary:
Zomato earns the largest share of revenue from food delivery, but Blinkit and Hyperpure are growing faster and becoming major contributors.

💰 How Zomato Makes Profit

Here’s how Zomato converts its sales into actual profits:

High-volume orders: Millions of daily orders reduce per-order delivery costs.

Cross-business synergy: Blinkit and Hyperpure share logistics and warehouses.

Subscription income: Zomato Gold and Pro memberships bring recurring revenue.

Advertising: Restaurants and FMCG brands pay for promotion on the platform.

Better efficiency: Technology and data help cut wastage and optimize routes.


Zomato finally reported a net profit of ₹458 crore in FY2024–25, marking its first profitable year since listing.

📈 Zomato’s Financial Highlights (FY2024–25)

Total revenue: ₹20,243 crore

Profit after tax: ₹458 crore

Blinkit growth: +117% YoY

Food delivery growth: +22% YoY

Cash reserves: ₹11,000 crore

Active customers: 60+ million monthly users


Zomato’s growth is now driven by scale and better cost control rather than deep discounts.


⚙️ Cost Structure & Challenges

Main costs:

1. Delivery partner payouts


2. Discounts and restaurant incentives


3. Technology and maintenance


4. Marketing expenses


5. Warehouse & operations for Blinkit and Hyperpure



Challenges:

Intense competition (Swiggy, Zepto)

Rising delivery costs

Pressure on profitability in Blinkit segment


But with growing order volumes and reduced discounts, margins are steadily improving.

🌍 Zomato’s Future Plans

Zomato is preparing for the next phase of growth. Its main goals for the coming years include:

Making Blinkit profitable by FY2027

Expanding Hyperpure to more cities and hotel chains

Building a sustainable logistics network using EVs

Focusing on high-frequency users with better loyalty programs

Exploring international quick commerce markets


Zomato also plans to make its platform greener — reducing plastic, shifting to electric delivery vehicles, and promoting eco-friendly packaging.

🧠 In Simple Words

Zomato’s model connects the entire food chain:

Zomato App → Customers & Restaurants

Hyperpure → Supplies raw materials

Blinkit → Delivers groceries instantly


All three businesses support each other, making Zomato stronger as a whole.

🧭 Final Thoughts

Zomato has transformed from a restaurant directory into a complete food ecosystem — connecting restaurants, suppliers, and customers under one platform.

The company is now entering a stable phase, where it can grow steadily without heavy losses. With Blinkit and Hyperpure expanding rapidly, Zomato’s next few years could redefine how India eats, shops, and cooks.

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