The food delivery app Zomato is all set to launch its IPO for the first time in the Indian market. The unicorn start-up announced that the first subscription will open on the 14th of July and close on the 16th of July. The first set of public offerings will cost around Rs.72-Rs.76 per share. The company is offering a fresh issue of Rs. 375 crores and an offer to sell Rs. 9000 all through its current promoter Info Edge India limited.
Kotak Mahindra Capital, Morgan Stanley India, Citigroup Global, BofA Securities, and Credit Suisse Securities are managing the sales. Although the announcement was made last year by founder Deepankar Goyal, the decision is finally being executed on July 14. Early reports suggested the launch will take place on July 19 but recent reports have confirmed July 14 as the opening day and July 16 as the closing day.
Like many other Indian start-ups, Zomato started from scratch. It has gained a considerable following and earned the tag of a Unicorn start-up after its value crossed the mark of one billion. The start-up was founded by two Indians, Deepankar Goyal, and Pankaj Chaddah. Both of them shared a hobby of collecting food menus from restaurants which formed the basic idea behind this food delivery app. A simple google search of ‘Zomato’ will lead you to articles constantly talking about its rise in the market, that’s how impactful its rise has been. With the entry into the IPO, Zomato has become the first Indian start-up to access public markets. There is a lot of speculation and predictions going around this issue but it remains a turning point for all the startups simply because the fact it is going to test the waters for the rest of the startups. One of the most important things to notice would be how the relationship between Swiggy and Zomato is impacted due to this change. Swiggy remains one of the fiercest competitions of Zomato in the Indian market.
The COVID pandemic hit the in-person sales of restaurants but people started to heavily rely on online retail. Ordering groceries, food, and other items became far more popular than it was in a pre-covid era. These habits are not going to decrease down drastically which works is going to work in favor of these home-delivery applications. Investors and potential investors both have realized the profit that lies in this area. It is surely going to work in favor of Zomato as well when it is available in the Indian IPO market.
Current investors of Zomato include names like Info Edge Ltd, Alipay Singapore Holding Pte Ltd, Uber BV, Tiger Global, Sequoia Global, Antfin Singapore Holding Pte Ltd, Temasek Holding Subsidiary, co-founder Deepinder Goyal, Kora, and few others. Temasek Holding Subsidiary is predicted to be the anchor investor of Zomato after its IPO launch. Antin is supposed to benefit from this launch the most. Tiger Global and Kora are the latest addition to this list of investors who joined in as late as February.
Currently, the food-tech company is aiming to increase its value from $8 billion to $10billion from this IPO launch according to the latest media reports. All in all, Zomato being the first food-tech Indian unicorn startup launching in IPO for public access remains a buzzworthy topic with lots of anticipation and speculations going around. Other start-ups and investors are closely eyeing this move to predict the outcomes.
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