Is Zomato Following PayPal Trajectory to Become Start-Up Mafia of India?

Is Zomato Following PayPal Trajectory to Become Start-Up Mafia of India?

  • 24.03.2025 09:42
  • outlookbusiness.com
  • Keywords: dangerous, danger

Zomato's former executives are creating a new entrepreneurial network in India, much like the PayPal Mafia. They are launching startups across industries such as healthtech, aerospace, and lifestyle, shaping the future of India's startup ecosystem.

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Estimated market influence

PayPal

PayPal

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Analyst rating: Buy

PayPal was a key player in the online payment system and has influenced many successful tech companies through its alumni.

Zomato

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Analyst rating: N/A

Zomato's ex-executives are creating their own startups, contributing to India's startup ecosystem.

Context

Analysis of Zomato's Alumni Startups: Business Insights and Market Implications

Business Insights

  • Zomato Mafia Phenomenon: Former Zomato executives are following the "PayPal Mafia" model by launching innovative startups across diverse sectors like healthtech, aerospace, and lifestyle.
  • Talent Network: The trend mirrors PayPal's alumni network, which spawned successful ventures led by figures like Elon Musk, Peter Thiel, and Reid Hoffman.

Market Implications

  • Diverse Sectors Impact: Startups include:
    • Gabit (Healthtech): Founded by Gaurav Gupta, former COO of Zomato, targeting health and wellness.
    • LAT Aerospace (Aerospace): Co-founded by Surobhi Das, former COO of Zomato, focusing on aviation technology.
    • Lyskraft (Lifestyle): Co-founded by Mohit Gupta, former deputy CEO of Zomato, with Mukesh Bansal (founder of Myntra).
    • Juleo (Lifestyle): Founded by Varun Sud and Chiranjeev Ghai, former senior executives at Zomato.
    • Ultrahuman (Healthtech): Founded by Mohit Kumar, former COO of Zomato's food delivery division.
    • EasyRewardz (Loyalty Platform): Founded by Akriti Chopra, co-founder and ex-people officer at Zomato.

Competitive Dynamics

  • Strategic Advantage: Ex-Zomato executives bring industry expertise, networks, and capital to their new ventures.
  • Network Effects: The collective success of these startups could create a "Zomato Mafia" effect, attracting talent and investment to India's startup ecosystem.

Strategic Considerations

  • Talent Retention: Companies like Zomato must focus on retaining top talent while fostering an entrepreneurial culture.
  • Alumni Engagement: Establishing mentorship programs and partnerships with alumni could enhance innovation and competitiveness.

Long-Term Effects

  • Ecosystem Growth: The trend signals a potential boom in India's startup ecosystem, driven by experienced founders.
  • Global Impact: These ventures may position India as a global hub for tech innovation and entrepreneurship.

Regulatory Impact

  • Minimal Current Impact: Most startups operate within existing regulatory frameworks, but scaling up may require policy adjustments.

This analysis highlights the transformative potential of Zomato's alumni startups, their competitive advantages, and the broader implications for India's entrepreneurial landscape.