Food delivery giant Zomato is set to be among the first few Indian tech startups seeking a listing this year. Zomato's initial public offering (IPO) is expected to raise over $750 million and up to $1 billion through the IPO, according to a report by The Economic Times.
The company is reportedly looking at a valuation of $6 to $9 billion through the listing. The report said, quoting sources, the IPO may happen by June and will be unlike a traditional IPO as no investor is likely to offload their shares or exit. Some of Zomato's investors include India's Info Edge, Tiger Global, Temasek Holdings, Sequoia Capital and others.
Deepinder Goyal, co-founder and chief executive officer of Zomato, told the company's employees this week that the IPO may be a 100 per cent primary offering, as this would help meet investors' expectations of long-term gains. This would mean that the company will raise more capital instead of shareholders selling their shares, said Goyal.
"No existing shareholder is willing to sell any shares in our IPO… People think that Zomato will be a $50 billion company in five years (I hope) and it will be unwise to sell shares right now,” Goyal said at a recent town hall, which the publication reviewed.
The IPO will help the company compete with well-capitalised companies in the same space, such as Swiggy, which is also raising about $800 million in a fresh round of funding led by Qatar Investment Authority sovereign wealth funds.
Earlier, Zomato had raised $250 million in primary funding after shares were sold by existing investors such as Ant Financial. The transaction valued the company at $5.4 billion.
Published 03 March 2021, 05:35 IST