Zomato takes a big step towards IPO, turns a public limited firm
Zomato: Foodtech giant Zomato has converted itself into a public limited company from a private company. Taking another step ahead towards initial public offering (IPO). The company is likely to go public this year.
Moreover, the food-delivery app is planning to raise $750 million to $1 billion via primary stake sale. The company, which started off as a restaurant discovery and review platform. Recently closed a $250 million primary funding round with another $250 million of shares being sold by existing investors like China’s Ant Financial.
The name of the company has been changed to Zomato Limited from Zomato Private Limited, the filings. While the Gurgaon-based food-tech firm plans to launch an IPO in the first half of this year, founder and CEO Deepinder Goyal had said last year in an internal mail to employees. Media reports peg the size of the IPO at anywhere between $650 million to $1 billion.
On the other side, the company has been on a fundraising spree, collect about $910 million from a clutch of investors through 2020 and early 2021. The firm’s valuation currently stands at $5.4 billion. Food delivery business grew manifold amid the pandemic as home-bound consumers took to online ordering of food.
Zomato claims to have clocked nearly 60% higher GMV on New Year’s Eve 2020 over last year. To put this in perspective, it translates into a GMV of Rs. 75 crores in a single day. While Zomato is among a batch of start-ups that are looking to go public in the coming months. Companies including Policy Bazaar, Grofers and Delhivery are already working on that front. Byju Raveendran led-tech firm Byju’s is also aiming to go for an IPO in the next 18-24 months, the founder & CEO said in a recent media interview.