India’s Zomato Eyes April $650 Million Public Filing

Zomato, India’s popular food delivery platform, is eying an approximate $650 million initial public offering (IPO) in Mumbai on a valuation that last month was estimated at $5.4 billion, Bloomberg reported on Friday (March 19), citing sources.

Launched in 2008 and backed by Jack Ma’s Ant Group, Zomato anticipates filing a draft prospectus sometime in April with an anticipated listing in Mumbai by Sept. 30, according to the sources, per Bloomberg. The size of the IPO, valuation, and its execution could be revised, the sources said.

Based in Delhi, Zomato has a workforce topping 5,000 and is among the largest food aggregators around the globe, according to the company’s website. It has a presence in 24 countries and more than 10,000 cities.

Nykaa E-Retail Pvt, backed by TPG Capital, is planning to list Zomato locally and will seek a minimum valuation of $3 billion, according to Bloomberg.

Public filings worldwide have raised over $188 billion in 2021 and so far are tracking for the strongest quarter in a dozen years, Bloomberg data indicates. 

Zomato is tracking to be among the first Indian tech startups looking to go public in 2021, The Economic Times reported earlier this month. 

The Indian food delivery startup raised $250 million in February led by Kora Management, with participation from new and existing investors. The estimated valuation was $5.4 billion, a big jump from its value of $3.9 billion in December 2020. 

Zomato partnered with Indian FinTech InCred to extend lines of credit to its restaurant partners. Although the food delivery business has survived the challenges brought by the coronavirus pandemic, the food service space is still struggling. InCred offers small business loans comprised of channel finance, term debt and capital debt in addition to education and personal loans.

The U.S.-based fast-food chain Wendy’s is teaming with India’s Rebel Foods and Sierra Nevada Restaurants to launch 250 ghost kitchens across the country. There are currently in excess of 6,800 Wendy’s in 30 markets globally, with nine brick-and-mortar locations in India.