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Indian Food Delivery Giant Zomato To Go Public Through $1.1 Billion IPO


04/28/2021


Indian Food Delivery Giant Zomato To Go Public Through $1.1 Billion IPO
A mega initial public offering (IPO) is being planned by Zomato, the Indian good delivery startup that acquired Uber's local food delivery business last year, said reports.
 
Application for filing an IPO was made by the company on Wednesday in Mumbai as the company hopes to raise as much as 82.5 billion rupees ($1.1 billion) from the listing. According to Dealogic, that would make this deal the largest ever IPO for India.
 
It would issue new shares worth as much as 75 billion rupees ($1 billion), it would issue new shares worth as much as 75 billion rupees ($1 billion) in a filing to India's stock market regulator. Up to 7.5 billion rupees (about $100.6 million) worth of equity will be sold by one of the shareholders of the company – the Indian tech firm Info Edge.
 
The regulatory filing also showed that the company was also planning to raise up to 15 billion rupees ($201.1 million) prior to its IPO through private funding rounds. That will help the company to reduce the money that its plans to raise via the IPO.
 
Founded in New Delhi in 2008, Zomato has built a name for itself as one of India's most successful startups. It employe3s more than 5,000 people and has business operations in more than 10,000 cities in over two dozen countries - from Sri Lanka to Slovakia to South Africa.
 
Last year, the company acquired the Indian business of Uber Eats in exchange for giving the United States based tech company an almost 10 per cent stake in its business which made global headlines in the business world. At the time of the deal, all the users, restaurants and delivery workers that were on Uber 's platform were shifted over to Zomato's app.
 
The listing is also a major moment for India's tech industry.
 
Over the last two decades, only a few of the Indian tech companies have chosen to go public and there has been no tech firm that was worth more than $1 billion that had chosen to go public. The only Indian tech unicorn to have been acquired a valuation of more than $1 billion is the Walmart -owned Flipkart.
 
According to CB Insights, Zomato was last valued at $5.4 billion.
 
No comment from the startup on the issue was available. 
 
The IPO will also serve as another test for the closely watched global food delivery industry. Deliveroo's IPO crashed in London last month despite great fanfare, becoming the city's worst debut on record.
 
(Source:www.cnn.com)


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