The food delivery giant Zomato’s application has formally been approved for an Initial Public Offering (IPO) by the Securities and Exchange Board of India (SEBI). This was one of the most keenly awaited share sales in recent history.
According to Moneycontrol, Zomato is expecting a valuation of 8.7 billion dollars based on the demand from the global technology specialist and emerging funds. China’s Ant Group-backed restaurant aggregator has also increased the fund through the ITO by 20% to 1.2 billion dollars. It has also diminished the secondary portion, or OFS, by 50% to 50 million dollars.
According to Moneycontrol, as per the Draft Red Herring Prospectus (DRHP) filed by Zomato, the company is planning to offer equity shares up to rupees 7875 crore which is nearly 1.1 billion dollars.
This Zomato application has managed to raise 250 million dollars in its pre-IPO primary fundraise a couple of months back at evaluation of 5.4 billion dollars from its investors such as Tiger Global, Bow Wave, Kora Management, Dragoneer.
After an impact due to the covid-19 pandemic in March 2020 Zomato held announced in September that the food online delivery space has recovered and evil exceeded levels in large number.
As per a report by Moneycontrol, Deepinder Goyal Zomato co-founder and current CEO mentioned then that the food delivery business can be seen, and he believes the rise of this sector will be very continue growing even after mass vaccination in India. He also said that the burn rate is really low and its market share is accelerating in all the regions. Zomato has reported a revenue of rupees 2486 crore in the financial year 2020.
This IPO will be the indicator to show how successful India’s startup economy is.