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Now everyone needs to make more money and have an early retirement. So, everyone would have tried to invest in stocks to make multi-basket returns in the future.
So, for all the stock market investors, here is an example of making huge returns on investing in early-stage startups.
Yes, now everyone wants secure returns on their investments but likely very few people bets on early-stage businesses to make investments.
Here is the story of Sanjeev Bikhchandani who can make 21,000 crores of returns if he sells 33.3% of shares of the company.
Sanjeev Bikhchandani and Zomato
For those of you who do know about Sanjeev Bikhchandani?
He is an angel investor who makes investments in early-stage startups. Even his business acumen is commendable. Also, he builds Info Edge company which own one of the most profitable companies like
- Jeevansathi.com
- 99acres .com
- naukari.com
In the latest interview with Zomato founder Deepinder Goyal at Yourstory, we got to know about Sanjeev Bikhchandani’s investment in Zomato.
Yes, Deepinder Goyal started Zomato in 2008 in the name of Foodie Bay. However, the name eventually changed to Zomato later.
On the initial day, Deepinder Goyal started a website with restaurant menu cards. Where the website’s USP was to provide all the restaurant’s latest menu cards.
During that day, people were struggling to get the menu cards. Sometimes, people need to wait for minutes to get the menu card and order the food.
Deepinder Goyal had experienced this annoying experience at the restuarant. So, he decided to solve this by launching a website name Foodiebay.
How did Sanjeev Bikchandani Invested in Zomato
There was rapid growth in the user base after the launch of the menu card website. So, Deepinder Goyal and his friends started improving and developing new features for the websites.
Soon after the traction was reducing day by day. Then Deepinder Goyal got the idea to build a restuarant listing feature on the site. But there was no money left to work on the site.
So, finally, in 2010, Deepinder Goyal met Sanjeev Bikhchandani for the investment.
However, in those days there was no concept of funding. But today the scenario drastically changed.
So, Sanjeev Bikhchandani understood the business verticals and their future. As he had great business acumen and he was ready to take a bet on Deepinder Goyal.
Finally, Sanjeev Bikhchandani offers $1 million of 1\3rd (33.3%) of the company. However, it is very tough for the entrepreneur to lose too much equity during the early days.
However, Deepinder Goyal knows that the website had no bright future if there is no investment. Even the business would not go anywhere if there was no cash flow.
Then Deepinder Goyal accepted the offer and gave 33.33% of the company (Zomato) in exchange for $1 million in 2010.
Also Read : How Ashneer Grover Spent 32 Laksh for Rs.500 Vegetables
How Sanjeev Bikhchandani made 21,000 crores
But now one did even think that the menu card listing site would grow into a huge empire of restuarant listing and online food delivery giants such as Zomato.
Now in 2023, Zomato valuation stood at $ 7.79 billion. So, if Sanjeev Bikchandani sells his 33.3% of stakes in 2023 he can get over 21,000 crores in exchange.
Yes, now the worth of 33.3% of Zomato shares is over $2.6 billion. This is the same old 33.3% shares that Sanjeev Bikhchandani bought for just $1 million in 2010.
This is how Sanjeev Bikchandani made 21,000 crores by investing 4 crores in 2010 on Zomato.
As this is the latest news on Zomato because there was an interview with Yourstory Shradha Sharma. In this interview, Deepinder Goyal opened up about Sanjeev Bikhchandani’s investment in Zomato.