Soon, you will have the option to order grocery items on Zomato as the food aggregator has announced its plan to launch a grocery section on its app. The announcement comes following Zomato’s $100 million investment in Softbank-backed grocery platform Grofers.
“We’re actively looking at the space, from an experimental point of view right now, and once we have conviction in the business model, we will look at it more,” the food deliver giant said on the virtual conference call.
Meanwhile, Zomato also announced it will launch its three-day initial public offering (IPO) from July 14 to July 16. The company is looking to raise as much as Rs 9,375 crore by issuing fresh stock and has fixed the price band at Rs 72-76 per equity share. The IPO constitute fresh issuance of Rs 9,000 crore, and an offer for sale of Rs 375 crore by existing selling shareholder Info Edge. The Gurgram-headquartered company is eyeing a post-issue valuation of Rs 64,365 crore, on a fully diluted basis, at the upper end of this price band.
The Food delivery platform Zomato has already received markets regulator Sebi”s go-ahead to raise funds through an initial share-sale.
The online food delivery segment has seen significant growth in the last few years with Zomato and Swiggy competing head-on to grab market share.
Zomato”s 2019-20 revenue had jumped over two-fold to USD 394 million (around Rs 2,960 crore) from the previous fiscal year, while its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) loss was around Rs 2,200 crore.
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In February, Zomato had raised USD 250 million (over Rs 1,800 crore) in funding from Tiger Global, Kora and others, valuing the online food ordering platform at USD 5.4 billion.
Kotak Mahindra Capital Company, Morgan Stanley India Company Pvt Ltd and Credit Suisse Securities (India) Pvt Ltd are the global coordinators and book running lead managers to the issue.
BofA Securities India Ltd and Citigroup Global Markets India Pvt Ltd have been appointed as merchant bankers to the public issue. The shares the company will be listed on BSE and NSE.
