India’s food delivery platform Zomato is going public in Mumbai with an estimated $1.1 billion (8,250 crore) initial public offering (IPO), Reuters reported.
The startup founded in 2008 filed a draft with market regulator Securities and Exchange Board of India (SEBI) and will float shares worth up to 75 billion rupees ($1 billion). Indian tech firm Info Edge, a Zomato shareholder, will sell up to 7.5 billion rupees (about $100.6 million) worth of equity. Zomato indicated that it will use the fresh capital to advance growth initiatives.
Zomato and competitor Swiggy control the food delivery space in India, which is estimated to be worth $4.2 billion, according to research firm RedSeer, per Reuters. Considered one of India’s most successful startups, Zomato, which is backed by China’s Ant Group, employs over 5,000 people. Its service is available in 10,000 cities across 24 countries.
The company raised $250 million in February led by Kora Management, Fidelity Management and Research and Tiger Global, with participation from new investors Bow Wave Capital and Dragoneer Investment Group. Last year Zomato notched $660 million from 10 new investors.
Last month, Zomato had been looking at a $650 million IPO at an estimated $5.4 billion valuation. In December 2020, its valuation was about $3.9 billion.
The startup recently teamed up with Indian FinTech InCred to offer credit access to restaurant partners. InCred extends loans to small businesses, including channel finance, term debt and capital debt.
Zomato acquired the Indian food delivery unit of Uber Eats last year. The deal gave Uber Eats India a valuation between $160 million and $200 million.
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