SEBI clears IPO application of Zomato

The Securities and Exchange Commission (SEBI) of India has approved food transporter Zomato’s initial public offering (IPO) application, paving the way for one of the most anticipated equity dives in recent history. Backed by
China AntGroup, Zomato is said to have filed for an IPO in April and is aiming to raise up to $1.2 billion in funding. SEBI could have formal approval for its IPO on Monday this week, said Moneycontrol, a person familiar with the matter. According to DRHP submitted by
Zomato, the company will offer up to a total of 8,250 kurore (about $1.1 billion) of shares. Of this, 7,500 rupees becomes a new issue, and 750 rupees sells InfoEdge to existing investors.
Moneycontrol first reported on August 9, 2020. Zomato sought to raise funds from Temasek and Tiger Global ahead of its target IPO in 2021. A valuation of $5.4 billion from investors including Kora Management, Tiger Global, Fidelity, Dragoneer, BowWave and more. Posting this, one of Zomato’s earliest investors, Info Edge, revealed that Zomato’s effective stock is now at 18.4%. This is in addition to the $660 million base round that ended in December 2020, plus $3.9 billion from Tiger Global Gora and 10 new investment homes including Luxor, Fidelity (FMR), D1 Capital Bailey Gifford, Mirae and Ted View. It was an evaluation. .
After the first COVID shock in March last year, Zomato said in September 2020 that the online food delivery space has surpassed preCOVID levels in many large pockets of recovery India as more people are accepting online orders. Zomato’s co-founder and CEO, DeepinderGoyal, was saying that the tailwinds for the food delivery business are clear and he believes growth in the sector will accelerate post-vaccination. He also said that market share with very low burn rates is accelerating in all regions.
Zomato reported a 20-year profit of Rs 2,486, despite a decline in orders and revenues caused by the pandemic that extended losses to Rs 2,451 during this period. The
food delivery and restaurant aggregator platform was founded in 2008 by Goyal and Pankaj Chaddah as Foodiebay, and was renamed Zomato on January 18, 2010.
In India, few Internet companies have been open for the past 20 years. In addition to Zomato, Paytm, Policybazaar, Nykaa, and Delhivery are also solidifying their plans for public listings, despite Flipkart and Freshworks listings making headlines in the US. These IPOs are an indicator of how successful India’s burgeoning startup economy is, and success could lead to more capital inflows into the private market.
Last week, the company signed an agreement to invest $120 million in online grocery company Grofers. Approval of the transaction is pending by the Indian Competition Commission.

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