Amid the economic turbulence caused by the pandemic, the online services sector has emerged as a bright spot. Companies like Swiggy, Zomato, Amazon, and Flipkart have experienced substantial revenue growth as more people adapt to new ways of living. Capitalizing on this trend, Zomato, a leading Indian food discovery and delivery service, has announced its Initial Public Offering (IPO) as of April 28, 2021.
As a major player in the food delivery industry, Zomato saw its revenue and orders surge to ₹2,981 crore in the October-December 2020 quarter, driven by an influx of new customers.
Initially a private entity, Zomato underwent a corporate restructuring earlier this month, amending its Memorandum of Association (MOA) to become a public limited company, now known as Zomato Limited.
Supported by major investors such as Jack Ma’s Ant Group and Uber, Zomato aims to raise $1.1 billion through its IPO, making it one of the largest stock market listings of the year. According to Moneycontrol, the company has submitted a Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI).
The prospectus outlines plans to generate $1.01 billion through new equity shares, with an additional $101.2 million to be sold by existing investor InfoEdge India. Valued at $5.4 billion, Zomato intends to use the funds for both organic and inorganic growth, as well as general corporate purposes.
BofA Securities India Limited and Citigroup Global Markets India Pvt. Ltd. are acting as the merchant bankers for the IPO, with Kotak Mahindra Capital Company Limited, Morgan Stanley India Company Pvt. Ltd., and Credit Suisse Securities (India) Pvt. Ltd. serving as book-running lead managers. SEBI is expected to approve the IPO within two weeks.
Founded by Deepinder Goyal and Pankaj Chaddah as a weekend project, Zomato has grown into a major unicorn with a presence in 23 countries.
For those concerned about managing food cravings during the pandemic, Zomato’s app offers safe delivery options and a new feature for priority service on Covid Emergency orders. Download the Zomato app from Playstore or iOS to enjoy your favorite meals delivered right to your doorstep.