I saw Zomato’s Nugget announcement.

It makes sense that Zomato would want to continue stacking S-curves.

Yes, people might draw parallels with Amazon’s AWS. An e-commerce company providing B2B SaaS.

Why does it make sense for Zomato?

I think with them renaming their company Eternal it was clear that more products are coming under the Eternal umbrella. And there won’t be brand dilution.

Facebook is Meta now. And Meta is into everything. Zomato is in the same way Eternal.

B2B sales is also not an issue. I am sure Zomato has a stellar sales team that has been selling to smaller merchants as well as giants like McDonald’s.

Amazon started on-demand cloud infrastructure at scale. Everyone thought what they were doing was a joke. It led to the creation of millions of small businesses over the next 2 decades. Companies did not need to provision hardware anymore. You could scale your infrastructure as your demand scaled.

Amazon had a huge e-commerce business and had already invested heavily in servers to handle peak holiday season traffic. For most of the year, a significant chunk of that server capacity was sitting idle. By offering Infrastructure as a service, Amazon found a way to monetize these underutilized resources. They turned their biggest cost center, server infrastructure, into a profit center.

Bezos made Amazon transform internally into a service-oriented architecture and use their own offering internally. Read: Stevey’s Google Platforms Rant (a classic).

I am sure Zomato has used Nugget extensively over the last 3 years. And the product offering is strong. It is an AI native no-code product that a lot of companies will find value in.

Parallel

2000s: Cloud took off and Amazon built a trillion dollar new business.

2025: Zomato riding the AI wave and offering their customer support solution (and who knows maybe driver allocation, pricing, demand prediction, chat, and other tools) in the future to customers to scale.

This would of course make sense if Zomato was sitting on GPUs that they were using to run their AI products, and were underutilizing them, and wanted to spread the operating expenses by providing AI solutions to customers. Turn their cost center into revenue like Amazon did 20 years ago.

I am not sure if this is the case. I don’t think they have their own infrastructure. They are probably using AWS.

Let’s say the solution is part AI and part human in the loop.

It is not like they have 1000s of call center employees, and operations people, and they are again driving utilization of their resources by offering managed services.

So this is just a traditional SaaS offering. And they are competing with every customer support solution provider who are also going to provide outcome based pricing and leverage AI.

Remember when AWS came in, infrastructure as a service was not mainstream. Pay per use was not mainstream. It was not just a new product offering, but also a new pricing model. There were hosting providers, but AWS made it easy for anyone to start a company without committing to long hosting contracts and provisioning a huge infrastructure.

So yes, I am not sure about the play here.

Stock performance is a function of both narrative and numbers.

Quick commerce market is expanding but there is fierce competition. Consumption is slowing down in India. Discretionary spending in food too? (guess, not backed by data).

This move then helps with the narrative. Only time will tell if the numbers follow.