Zomato aims $1.3 billion IPO at up to $8.6B valuation

Image Credit: Reuters

Indian food delivery startup Zomato’s initial public offering, which opens on July 14, is priced at 72 Indian rupees (96 cents) to 76 ($1), giving the company a valuation of up to $8.6 billion, the company announced on Thursday.

Zomato had filed for an IPO in April, two months after it raised $250 million at a $5.4 billion valuation. 

According to its S1 filing, Zomato’s offer will include a fresh issue of shares worth up to 90 billion rupees and a share sale worth up to 3.75 billion rupees by its shareholder Info Edge, taking the total offering to 93.75 billion rupees ($1.25 billion). 

“While we had a footprint across 23 countries outside India as of March 31, 2021, we have taken a conscious strategic call to focus only on the Indian market going forward,” Zomato said in its prospectus.

Founded in 2008 and has raised more than $2.2 billion to date, Zomato’s revenue for the financial year ended in March 2021 was $283 million, down 23% year-over-year. The company said it’ll have around $2 billion in the bank after a successful IPO. 

“In terms of valuation, financials, and future business prospects, we feel things are going to look good for Zomato in the near-term,” said Shikher Jain, manager, fundamental equity research at Anand Rathi in Mumbai.

Written by Sophie Blake

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