Indian food delivery startup Zomato on Wednesday filed for an initial public offering of Rs 8,250 crore as consumers increasingly turn to ordering food online during the COVID-19 pandemic. With its latest move, the food delivery app has become the first tech unicorn startup from the world’s second largest internet market to do so in recent years.
Zomato said its IPO will be an amalgamation of fresh issue of equity shares and an Offer For Sale (OFS) by existing shareholder Info Edge Ltd — the parent firm of Naukri.com. Zomato’s IPO could be the largest to hit Dalal Street since SBI Cards and Payment Services in March 2020. Meanwhile, Info Edge has said it will sell shares worth Rs 750 crore in the upcoming initial public offering
Launched in 2008, Zomato is one of India’s most prominent startups. It is present in 24 countries and employs more than 5,000 people, according to its website. Zomato said it will utilise funds raised through the issue for organic as well as inorganic growth, along with general corporate purposes.
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 FY20 revenue had jumped over two-fold to USD 394 million (around Rs 2,960 crore) from the previous fiscal, while its earnings before interest, taxes, depreciation and amortization (EBITDA) loss was around Rs 2,200 crore.
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 Limited, Morgan Stanley India Company Private Limited and Credit Suisse Securities (India) Private Limited are the global coordinator and book running lead manager to the issue.