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Zomato seeks to raise IPO valuation to $10 billion

Zomato seeks to raise IPO valuation to $10 billion

Global marquee investors like T Rowe Price, Fidelity Investments and Capital Group have expressed interest in investing in Zomato’s IPO

Zomato is expected to launch its IPO later this month Zomato is expected to launch its IPO later this month

Zomato that will soon launch its IPO is seeking a valuation of $10 billion as the platform witnesses a surge in online food-ordering. The company was seeking an $8 billion valuation about three months ago. The food delivery platform is expected to launch its share sale later this month. It will be the first among a bunch of India’s unicorns to go public.

A person in the know told Livemint that the IPO pricing will be done in line with the rise in investor demand that values the company higher than it did three months back. Total value of shares to be offered in the IPO plus offer for sale could be around $1.5 billion, which is also higher than the original plan to raise $1.1 billion.

Info Edge (18.55 per cent) is one of Zomato’s leading investors, along with Uber BV (9.13 per cent), Alipay Singapore Holding Pte Ltd (8.33 per cent), Tiger Global (6 per cent), Sequoia Capital (5.98 per cent), co-founder Deepinder Goyal (5.51 per cent), Temasek Holdings subsidiary (3.65 per cent). The IPO will see a dilution of 10-15 per cent through fresh issuance of shares and an offer for sale by Info Edge, the daily stated.

Global marquee investors like T Rowe Price, Fidelity Investments and Capital Group have expressed interest in investing in Zomato’s IPO.

Zomato wants to use the IPO proceeds for acquisitions and organic growth plans. In fiscal 2020, Zomato witnessed a gross order value of Rs 11,221 crore. Its premium subscription programme ‘Zomato pro’ recorded 1.4 million members till December 31.

The delivery platform is the first in a long queue of startups to launch IPOs. Next in line are payment services platform Paytm, e-commerce giant Flipkart, online insurance platform Policybazaar, cosmetics retailer Nykaa. India’s IPO rush comes as the pandemic pushes millions of people to bank on online platforms for everything from groceries and medicines to apparel and cosmetics.

Also read: Zomato IPO gets SEBI's approval, listing likely in mid-July; check out details
Also read: Info Edge share climbs 5% after Sebi clears Zomato IPO

 

 

Published on: Jul 06, 2021, 8:32 AM IST
Posted by: anwesha madhukalya, Jul 06, 2021, 8:27 AM IST