Food delivery and restaurant aggregator platform Zomato is set to deliver a hot IPO to the market as SEBI gives it's nod to the much awaited Zomato offering. Market watchers are expecting the food tech giant to launch its IPO which will look to raise over $1.2 billion by mid July.
Read/Watch: Startup IPO rush in July
Zomato, backed by China’s Ant Group, has proposed to offer (as per DRHP) equity shares aggregating up to Rs 8,250 crore. Of this, the company will issue fresh shares worth Rs 7,500 crore, while Rs 750 crore will be an offer for sale for its existing investor Info Edge.
Zomato which was founded in 2008 by Deepinder Goyal and Pankaj Chaddah and was named Foodiebay initially to be branded to Zomato only in 2010. The foodie app reported a revenue of Rs 2,486 crore for FY20, even as its losses widened to Rs 2,451 crore during this period, as the pandemic shrunk order volumes and dine out revenue.
Zomato recently went back to try it's luck in the grocery business by picking up a 9.3% stake in e-grocer Grofers.
Brokerages remain bullish on the business model that is dominated only by 2 players Swiggy and Zomato.
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