Online restaurant Zomato is planning for an initial public offering (IPO) in 2021 to make it India’s most valued company. The 12-year-old is all set for a market debut. It was co-founded by IIT Delhi engineer and former Bain consultant. According to reports, after achieving huge success founders are planning to list the company in India. Currently, Zomato has a value of more than $1 billion.
As per sources, the Gurgaon based company will offer $30 billion share sale to its ex-employees. It is said to be a major ESOP liquidity event in the country. However, Zomato will be raising around $600n million in the pre-IPO round and will raise $100 million from Tiger Global. Earlier, the online restaurant raised around $150 million from Singapore based Temasek, China’s Ant Financial, and UK’s Bail. It should be noted that Zomato’s value will cross $3.5 billion in the new round if it gets successful.
According to Goyal, their legal and finance team are working hard on IPO and it will begin next year. He also added that Zomato’s value is increasing drastically and it was possible because of their dedicated team.
In the initial days of lockdown, the company incurred huge losses but last month the ratio has gone high up to 75-80%. But Zomato has also cut its losses from $20 million in October 2019 to $1.5 million in June 2020. There were reports about the merger of Swiggy and Zomato but there are no updates on the same. However, the cash raised by Zomato will be used in the future when required.
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