Zomato can continue to be in business till the people continue to buy their food in its app. This adds value into it. Beyond any cashflow model of business, such a valuation model is much more secured. Likewise Zomato’s share can also continue to create wealth for investors till they continue investing into this.
“As one of the two leading players in the rapidly growing food delivery market in India, we expect Zomato to deliver over 40 per cent revenue CAGR making it one of the fastest-growing internet companies in the region,” the Swiss brokerage firm in India UBS Securities has said.