Why did Deepinder Goyal Pay $10,000 For Zomato.Com Domain
Zomato which sounds like Tomato is making headlines in every corner of the country. The startup was founded in 2008 as Foodiebay. In 2010, when the startup got some funding, they started looking for some other name. They were looking for some catchy name which resonates the aura of the company.
UREKA !!
They found a domain called Zomato.com. Since the domain was priced high, Deepinder Goyal hesitated to buy it.. This is because the price was around $10,000. A fresh domain name called forkwise was available at $10. He wanted to buy this.
ROLE OF INVESTORS
Goyal did not want to buy this domain. But, the investors convinced him to buy the domain. Luckily, the decision paid off. The rapid growth nearly doubled. The viewers increased. Hence, Zomato became a pan-India restaurant review website. The startup rebranded from Foodiebay to Zomato.
The company got so much profits that it acquired Uber Eats India in 2020. In July, 2021 Zomato went public. Till then, the IPO of startup has been valued among TOP 50 in India.
At that time, Deepender was unsure about paying $10,000 for Zomato.com Domain. The investment would have turned disaster if this did not work. IF it didnt, it could have been a serious setback for Zomato. That is why, Deepender Goyal was cautious about spending such a large amount a large amount on a domain name, especially in the early days when funds were limited and every dollar counted.
WORST CASE SCENARIO
In a worst-case scenario, a failed investment in Zomato.com might have forced Deepinder to either rebrand yet again or invest even more in marketing just to establish credibility with users. Thankfully, the decision paid off, and that $10,000 or Zomato.com domain became a foundational element in Zomato’s journey to becoming a household name.
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