Abstract

This case is about the restructuring strategy taken up by India-based restaurant search and review website, Zomato. Zomato was launched in 2008 by Deepinder Goyal (Goyal), a management consultant. Zomato was able to raise funds from various investors and in no time expanded pan India and by 2012 reached its first oversees location. By 2015, it was operating in 23 countries. With rapid expansion and increased competition, the revenue of the company kept growing. However, EBITDA was negative and was continuing to fall. Goyal then decided to downsize operations. This had a positive effect and within a few months the company managed to break even. The case discusses in detail the inception and growth of the company and the strategies that helped it break even.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The challenges faced by startup companies.
• How to manage a startup
• The drivers of profitability for a startup
• Building a company around existing and new business opportunities
• Managing crisis in a startup venture

Keywords

Zomato,Restructuring,Downsizing,Breakeven,Competition,Strategy