Zomato IPO: Targeting $1.3 Billion Valuation

Zomato Increases IPO Target

Zomato, an Indian food delivery company, announced on Thursday an increase in its planned initial public offering (IPO) to $1.3 billion.

The subscription period for the IPO will begin on July 14th and conclude on July 16th.

The company, which currently operates at a loss, has set a price range of 72 to 76 Indian rupees (approximately 96 cents to $1) per share.

Zomato is aiming for a maximum valuation of $8.56 billion through this public offering.

Following a successful IPO, Zomato anticipates having approximately $2 billion in available capital.

Plans are in place to list the company’s shares on Indian stock exchanges.

Founded 12 years ago and headquartered in Gurgaon, India, Zomato has secured over $2.2 billion in funding to date.

Key investors include Info Edge, Temasek, Tiger Global, and Ant Group.

Zomato is notably the first prominent technology startup in India to pursue a public market listing.

During a virtual press conference held on Thursday, company executives indicated that Zomato’s primary focus will remain on the Indian market.

The company is also considering expansion into new categories, such as online grocery delivery services.

Currently, Zomato provides search and discovery functionalities across nearly two dozen markets.

Competitive Landscape

Executives downplayed the threat posed by Amazon, stating that it has not yet significantly impacted their market share.

Amazon entered the food delivery sector last year, but its operations are currently limited to Bangalore.

Zomato disclosed its latest financial results on Thursday.

Revenue for the financial year ending in March of this year decreased by 23% to $283 million.

However, the company managed to reduce its losses by 66% to $110 million compared to the same period last year.

This represents a substantial improvement in financial performance.