Zomato AI Tool Nugget Solves Customer Queries and Enters SaaS Market

The Unexpected Turn in Zomato’s Playbook

When you think of Zomato, images of late-night food cravings or Blinkit’s 10-minute grocery deliveries come to mind. But in a bold pivot, Zomato has quietly stepped into a new arena software-as-a-service (SaaS). Yes, the foodtech giant is now selling software, and it’s already proving to be a game-changer.

Their new AI tool, Nugget, is a no-code customer support platform designed to handle 80% of customer queries autonomously. Already live across Zomato, Blinkit, and Hyperpure, Nugget is processing over 15 million customer interactions monthly. But what’s really interesting is how this internal tool, born out of necessity, could now become Zomato’s most valuable export.

What is Nugget? The AI Tool at the Heart of Zomato’s Strategy

Built over three years by Zomato Labs, Nugget is a no-code, AI-powered conversational platform. It uses large language models (LLMs) to automate responses across multiple channels like chat, email, and voice without the need for coding or manual configuration.

According to Deepinder Goyal, Zomato’s CEO, the tool has already brought significant efficiencies to customer support, enabling faster resolutions while drastically cutting costs. And now, it’s being productized and offered to external businesses.

Key Features of Nugget:

• No-Code Interface:

  Businesses can deploy it without writing a single line of code.

• LLM-Powered Automation:

  Uses advanced AI to resolve queries without human agents.

• Omnichannel Support:

  Handles chat, email, voice, and more.

• Plug-and-Play Deployment:

  Quick integration across sectors.

Why is Zomato Selling Software Now?

Zomato’s evolution into a tech product company isn’t just experimental—it’s strategic. In January 2025, Zomato rebranded its corporate structure as Eternal Ltd., a holding company encompassing Zomato (food delivery), Blinkit (quick commerce), Hyperpure (B2B food supply), and now District (dining experiences).

With this new ecosystem in place, Zomato is betting on AI to drive the next phase of growth.

Here’s why this SaaS pivot makes sense:

1. Monetizing Internal Innovation:

   Nugget was built to solve Zomato’s own pain points. Turning it into a product creates a new revenue stream.
   

2. AI is the Future of CX:

   As more companies automate customer service, Nugget meets a growing market need.
   
   

3. SaaS Offers Scalable Margins:

   Unlike food delivery, software doesn’t rely on logistics, making it far more scalable and profitable.
   
   

The Impact: Cost Cuts, Layoffs, and Industry Shakeups

Zomato’s AI adoption hasn’t come without consequence. In April 2025, the company laid off nearly 600 customer support employees, citing increased efficiencies brought by Nugget and a slowdown in Blinkit’s growth.

This highlights a growing trend across industries AI is replacing traditional roles, especially in high-volume, repetitive jobs like customer service. But for businesses, it translates to faster support, reduced overhead, and consistent service.

Who Can Use Nugget? It’s Not Just for Food Delivery

Zomato is now opening up Nugget for use across various industries, including:

• E-commerce
• Fintech
• Healthcare
• Hospitality
• Logistics
  
  

The platform’s universal design makes it adaptable beyond food tech. In fact, several early pilot clients from outside the Zomato ecosystem are already testing Nugget in customer support operations.

Market Opportunity | India’s Growing Appetite for SaaS

India’s SaaS market is booming, projected to reach $50 billion by 2030, with startups and enterprises alike seeking AI-powered solutions to boost efficiency. With tools like Nugget, Indian tech companies are proving they can build world-class enterprise software in-house.

Zomato’s entry into this space could spark a trend where consumer tech companies start productizing their internal AI tools—adding new dimensions to their business models.

Challenges Ahead | Can Nugget Compete with Global AI Tools?

While Nugget shows promise, it enters a crowded market dominated by global giants like Zendesk, Freshworks, Intercom, and Salesforce’s Einstein AI. To succeed, Zomato will need to:

• Prove its scalability beyond foodtech.
• Offer superior Indian language support.
• Compete on both pricing and accuracy.
• Build a developer and support ecosystem around the platform.

But given Zomato’s engineering talent and deep understanding of customer interaction at scale, Nugget might just have the edge, especially in emerging markets.

Final Thoughts: Is This Zomato’s Smartest Bet Yet?

Zomato’s shift into SaaS with Nugget is more than just a side hustle—it could redefine the company’s future. With AI rapidly transforming every aspect of business, Nugget is not just an efficiency play; it’s a strategic leap into becoming a technology-first brand.

If successful, this move could inspire other Indian startups to follow suit, marking a new chapter where India not only consumes software, but builds and exports it.