Long before Zomato became a billion-dollar listed company, it was spotted by Sanjeev Bikhchandani, founder of Info Edge and the sole early backer of the food delivery giant.
From its humble beginnings as a startup called Foodiebay to facing moments of near collapse, Zomato’s journey is one of perseverance and risk-taking. In a conversation with Business Today’s Aabha Bakaya and later with Moneycontrol, Bikhchandani reflected on Zomato’s growth, the significance of its IPO, and his early decision to back the company.
Zomato’s IPO: Why It Matters
Bikhchandani described the Zomato IPO as a landmark moment for India’s startup ecosystem. Beyond the record subscription and the breaking of the myth that Indian startups must list abroad, he said its greatest significance lies in showing that young people from ordinary middle-class families can dream big and succeed.
“When companies like TCS and Wipro were founded, they created entire industries — but they came from established business houses. Zomato was different,” he explained. “Deepinder Goyal, Pankaj Chaddah, Gunjan Patidar, and the rest of the team were not from wealthy backgrounds. They proved that extraordinary success can come from very ordinary circumstances.”
He recalled Deepinder Goyal’s personal story — growing up in Muktsar, Punjab, as the son of a schoolteacher, facing threats of terrorism in childhood, struggling academically when first sent to Chandigarh, but eventually clearing IIT, joining Bain, and later founding Foodiebay. “The fact that someone with this background could go on to create a decacorn inspires millions of young Indians,” said Bikhchandani.
The First Meeting and Investment
Info Edge’s tryst with Zomato began in 2010 when both Bikhchandani and Hitesh Oberoi (CEO of Info Edge) were using Foodiebay and loved its unique offering of restaurant menus. “Hitesh suggested we should look at it for investment. I cold-emailed Deepinder, who initially ignored me, thinking I was trying to sell Naukri services. When we finally met, we hit it off instantly,” Bikhchandani recalled.
Within 72 hours of their first meeting, Info Edge decided to invest, impressed by the team’s clarity, customer insight, and natural traction. “We knew they would succeed, though nobody could have imagined this scale back in 2010,” he said.
Riding the Highs and Lows
Over the years, Zomato faced multiple existential challenges — from competition with well-funded rivals to raising enough capital, and later, navigating the first COVID-19 lockdown. “Deepinder often faced huge stress, but he never showed it. Each time, he and his team steered the company through with cool heads,” Bikhchandani noted.
Info Edge once had more than 60% of its portfolio (by cost) invested in Zomato, a move Bikhchandani admits was risky: “It probably wasn’t prudent, but because of that ‘foolishness’ we’ve won so big today.”
Over the years, the relationship between the two companies evolved. “In the beginning, we altered Zomato’s fortunes by providing capital. But today, Zomato has transformed Info Edge’s fortunes. It’s reciprocal symbiosis,” he said.
On Deepinder Goyal’s Leadership
Having known him for over a decade, Bikhchandani said Deepinder has matured as both a strategic thinker and a people leader. “The biggest change has been in his ability to build and retain a great leadership team. That has been critical to Zomato’s success,” he added.
Info Edge’s Investment Philosophy
Explaining why founders often prefer Info Edge over traditional venture capital firms, Bikhchandani said:
- Info Edge is seen as founder-friendly, given its entrepreneurial roots and empathy for the startup journey.
- It offers patient capital, not rushing for exits like funds with shorter lifecycles.
- Even the fund it now manages has a 12+2 year horizon, backed by Info Edge and Temasek.
As Policybazaar’s Yashish Dahiya once told him, “I am running a marathon, not a sprint. I need patient investors. That’s why Info Edge works for us.”
The Road Ahead for Info Edge
Looking beyond Zomato, Bikhchandani said Info Edge’s growth will continue to come from its four core verticals — jobs, real estate, matrimony, and education classifieds. With Naukri as the bedrock, he expressed optimism about growth prospects, provided the country avoids another severe COVID wave.
Zomato’s Legacy
For Bikhchandani, Zomato’s story is not just about creating wealth but also about inspiring a generation. “If Deepinder could do it, so can a hundred million young Indians. Even if a fraction try, and a million startups succeed, it will transform India,” he said.
