Zomato Ltd. is seeking a valuation of up to Rs 60,000 crore as the food ordering and delivery platform looks to raise capital for expansion.
The maiden offer comprises a fresh issue of Rs 9,000 crore and sale of shares worth Rs 375 crore by existing investors, according to its red herring prospectus.
The company, in a separate statement, said it will sell shares at Rs 72-76 apiece in the IPO that opens on July 14. That will give it a market value of up to Rs 59,623 crore (about $8 billion).
Backed by the likes of Info Edge India Ltd. and Ant Financial, Zomato is looking for capital to expand business as the pandemic has accelerated digital shift. The online delivery platform recently agreed to invest in Grofers, entering the online grocery market for a second time.
Key Numbers From Zomato’s RHP
Delivery partners: 1,69,802.
Active restaurant listing: 3,89,932.
Active food delivery restaurants: 1,48,384.
Present in 525 city in India and 23 countries outside India.
1.5 million Zomato Pro members and 25,443 Pro restaurant subscribers.
The pandemic, however, did impact Zomato’s business as the nation remained locked down in the first couple of months of the last fiscal before the economy reopened gradually. “There was a significant adverse impact on our operations in fiscal 2021 due to the Covid-19 pandemic,” the company said in the prospectus.
Revenue dropped 23.4% to Rs 1,994 crore in the year ended March 2021.
Loss, however, narrowed to Rs 812 crore from Rs 2,363 crore the year before. That came as it cut discounts and cost per order.