Zomato files IPO for ₹8,250 crore

Zomato a food delivery startup, funded by Ant Group, has filed for an initial public offering of up to ₹8250 crore, draft papers submitted to the market regulator showed.

The online food delivery industry has shown significant growth in the last few years where Zomato and Swiggy are competing head-on to grab market share.

Zomato said in its filing that it intends to raise Rs 8,250 crore in capital by offering the company’s equity shares for sale, of which Rs 7,500 crore will be through fresh issuance. The rest of the Rs 750 crore will be an offer for sale by existing shareholder Info Edge, Zomato’s earliest backer.

Zomato’s FY20 revenue had increased over two-fold to around ₹2,960 crore from the previous fiscal.

Zomato was founded in 2008 in Delhi which has more than 5,000 employees working. The food startup has recently raised $250 million from investors including Kora Management and Fidelity Management & Research Co., valuing the startup at $5.4 billion, according to an exchange filing in February by Info Edge India Ltd., an existing backer. Info Edge India shares were up 1.5%.

The food startup, Zomato has launched home-style meals in association with partner restaurants, as an increasing number of users, sick with covid infections, seek simple meals.

It has rolled out mini-menus on its app. “Over the last few days, one of the most requested features on @zomato has been – a selection of home style food for people battling poor health. We just launched home style mini-menus along with thousands of restaurants across the country,” Zomato’s founder Deepinder Goyal said in a post on social media platform Twitter.