Zomato, a food delivery service backed by Ant Group, has filed for an IPO worth up to Rs 8250 crore, according to draught papers filed with the stock exchange. In a turbulent year, launching one of India's most awaited initial public offerings (IPOs). Zomato and Swiggy are vying for market share in the online food delivery industry, which has seen rapid growth in recent years. On April 27th, Info Edge announced that it will sell 750 crores worth of shares in an upcoming initial public offering.
A stock market launch, also known as an initial public offering (IPO), is a public offering in which a company's shares are sold to institutional investors as well as retail investors.
Major things to know about Zomato IPO
- According to Zomato's DRHP, the company will sell equity shares worth up to Rs 8,250 crore (approximately $1.1 billion). Rs 7,500 crore will be raised through a new issue, while Rs 750 crore will be raised through a bid for sale to established investor Info Edge.
- Kora Management, Tiger Global, Fidelity, Dragoneer, and Bow Wave were among the investors who contributed $250 million to Zomato's pre-IPO primary fundraise, which valued the company at $5.4 billion.
- Info Edge, one of Zomato's early investors, announced that its successful stake in the company has increased to 18.4 percent.
- Zomato's revenue in FY20 increased by more than two-fold to USD 394 million (roughly Rs 2,960 crore) from the previous fiscal, while its EBITDA loss was around Rs 2,200 crore.
- Zomato renamed itself Zomato Ltd after amending its memorandum of association earlier this month to become a public limited company.
- Since SBI Cards and Payment Services' IPO in March 2020, Zomato's IPO could be the largest to reach Dalal Street.
- Zomato had previously confirmed the addition of five independent directors to its eight-member board of directors, including four women, on April 23.
- According to reports, Zomato has chosen Kotak Mahindra Bank, Morgan Stanley, Citi Bank, Credit Suisse, and Bank of America as its lead merchant bankers.
- As a growing number of users sickened by covid infections seek easy meals, the online food aggregator Zomato has launched home-style meals in collaboration with partner restaurants
- The company will also conduct a pre-IPO placement in consultation with the managers for a total sum of not more than Rs. 1,500 crore, at a final price determined by the company.
Deepinder Goyal and Pankaj Chaddah created the food delivery and restaurant aggregator website Foodiebay in 2008, which was renamed Zomato on January 18, 2010. Zomato operates in 24 countries and over 10,000 cities around the world, allowing us to realise our vision of better food for more people. Zomato was established in Delhi in 2008 and now employs over 5,000 people.
Zomato's non-profit, Feeding India, has launched an initiative in collaboration with Delhivery to fill this void. The company was able to collect 12.5% of our $50,000 target in just a few hours after launching the campaign.