A Leap of Faith : Deepika Kapoor (Startup Space)

A Leap of Faith: Deepika Kapoor's 14-Year Journey from Rs 10 Lakh to Rs 420 Crore.

In 2010, Deepika Kapoor, an enthusiastic foodie and budding angel investor, found herself in a conversation that would change her life. A close friend introduced her to a couple of ambitious entrepreneurs working on a startup that aimed to revolutionize the way people discovered and engaged with restaurants. The startup was called Zomato, and Deepika, captivated by the founders' vision and driven by her own passion for food, decided to invest Rs 10 lakh in their first round of funding.

The Early Days:

In July 2010, Deepika took a leap of faith, becoming one of Zomato's first angel investors. Just months after her investment, Zomato attracted the attention of Info Edge, one of India's most successful startups, which decided to invest in the young company. This early endorsement sent Zomato’s stock price soaring, and Deepika’s small investment began to grow.

The Rise Begins:

By February 2012, Zomato had secured a Series A round of Rs 13.6 crore led by Info Edge. Deepika’s investment had now grown fivefold to Rs 50 lakh. Later that year, another round of funding led by Info Edge pushed her investment value to Rs 1.11 crore, a stunning 11x return in just two years.

Despite the tempting offers to sell her shares and cash in on her gains, Deepika chose to stay invested. She believed in the company's vision and the determination of its founders.

Major Milestones:

The journey continued as Zomato went through multiple funding rounds, each one increasing the value of Deepika’s investment. In November 2013, Zomato raised Rs 212 crore in a Series D round led by Sequoia Fund, taking Deepika's investment value to Rs 4.4 crore—44 times her original investment.

Zomato’s growth didn’t stop there. By April 2015, the company’s market cap had reached Rs 5,000 crore, and Deepika's stake was now worth Rs 18.4 crore, a staggering 184 times her initial investment.

A Shift in Strategy:

As Zomato’s core business of restaurant aggregation and discovery started to plateau, the company pivoted into the food delivery market. This move, bolstered by the acquisition of Blume-backed Runnr, marked a new chapter for Zomato. The food delivery segment quickly became the face of the company, drawing significant investor interest.

The Road to IPO:

By 2018, Zomato had raised Rs 2,638 crore in three separate funding rounds, including a major investment from Chinese giant Ant Financial. Deepika’s net worth in Zomato had now reached Rs 53 crore, an incredible 530 times her initial investment.

In the years that followed, Zomato continued to grow, acquiring UberEats in 2020 and raising funds from global investors like Tiger Global. As the company prepared for its IPO in 2021, Deepika’s investment was now worth Rs 94 crore, 940 times her original Rs 10 lakh.

The Grand Finale:

Zomato’s much-anticipated IPO launched in July 2021, receiving an overwhelming response from the market. The shares, initially priced between Rs 72 and Rs 76, opened at Rs 116 on their first day of trading, a 53% premium. Deepika's investment had now ballooned to Rs 188 crore.

As of the latest stock price of Rs 259, Deepika's stake in Zomato was valued at an astonishing Rs 420 Cr

Conclusion-

Deepika Kapoor’s journey from a small Rs 10 lakh investment to a Rs 420 crore fortune over 14 years is a testament to the power of vision, patience, and belief in the startup ecosystem. Her story is not just about financial gain but also about the potential of India's startup landscape, where dreams can transform into remarkable success stories.

For Eternity Financial Services

Kapil Goenka