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Zomato becomes first Indian startup to enter Sensex 30

Entrackr · 23h

Foodtech giant Zomato has made history as the first Indian startup to join the Bombay Stock Exchange (BSE) Sensex 30, replacing JSW Steel Limited in the benchmark index of India’s top 30 companies. Zomato's inclusion in the SENSEX follows its strong performance over the past year. The stock has gained 38% in the past six months, 124.79% year-to-date, and 114.29% over the last year. On Monday, following its inclusion in the Sensex 30, Zomato's stock declined by 3.15% (as of 12:28 PM) to Rs 278.70 on the Bombay Stock Exchange, with a total market capitalization of Rs 2.68 lakh crore (approximately $31.9 billion) During the second quarter of the ongoing fiscal year, Zomato achieved a remarkable 68.5% quarter-on-quarter growth in operating revenue, reaching 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 to Rs 176 crore in the quarter ending September. Its arch-rival Swiggy posted Rs 3,601 crore of revenue and a net loss of Rs 625 crore during the second quarter of the current fiscal year. The recently listed firm is currently traded at Rs 592.8 per share and has a total market capitalization of Rs 1,32,695 crore (around $15.8 billion). Zomato also secured $1 billion from qualified institutional investors (QIIs) last month. The money keeps the firm with enough powder for future investments, even as the stock will benefit from index investing now, even though the BSE Sensex remains a smaller representation of India’s investment opportunities than say, the 50 share NSE Nifty. For Zomato, the index inclusion is a massive vindication of its seemingly high risk approach, where it has simply refused to rest on laurels, always pushing the boundaries to seek a competitive edge. Be it the acquisition of Blinkit, edgy communication strategies, or the investments into other startups, the firm has done enough to justify the lofty valuations, and expectations from investors thus far. The recent fundraise has also underscored its readiness to invest and invest big where it sees a need to do so. 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?