Hindi Tamil Telugu
    More
    In the news
    Narendra Modi
    Amit Shah
    Box Office Collection
    Bharatiya Janata Party (BJP)
    OTT releases
    Hindi Tamil Telugu
    User Placeholder

    Hi,

    Logout

    India
    Business
    World
    Politics
    Sports
    Technology
    Entertainment
    Auto
    Lifestyle
    Inspirational
    Career
    Bengaluru
    Delhi
    Mumbai

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
    Home / News / Business News / Key takeaways from Zomato's Rs. 8,250 crore-worth IPO
    Next Article
    Key takeaways from Zomato's Rs. 8,250 crore-worth IPO

    Key takeaways from Zomato's Rs. 8,250 crore-worth IPO

    By Nachiket Mhatre
    Apr 28, 2021
    11:20 pm

    What's the story

    Food delivery platform Zomato Ltd filed its Draft Red Herring Prospectus (DRHP) with Securities and Exchange Board of India (SEBI), heralding its Initial Public Offering (IPO) amounting to Rs. 8,250 crore.

    It is split between the company's issual of equity shares totaling Rs. 7,500 crore. The remaining Rs. 750 crore includes the early investor Info Edge India Ltd selling its stake through the IPO.

    Hedging both ways

    Company caps pre-IPO placement to Rs. 1,500 crore

    Interestingly, Zomato is also hedging against the IPO's failure by accepting pre-IPO placement capped at the maximum amount of Rs. 1,500 crore at a final price decided by the company.

    This arrangement allows investors to purchase company's stocks usually at lower value and is a means for the company to minimize the risk of IPO failing to achieve targets.

    You're
    14%
    through

    Optimistic

    Zomato CEO bets big on the company's future prospects

    Last year, Zomato co-founder and CEO Deepinder Goyal had informed employees of the IPO plan in the first half of 2021.

    Goyal expects the food delivery sector to exhibit a strong growth in the foreseeable future, and will in fact accelerate post vaccination as the country limps back to normalcy.

    He also emphasized Zomato's low burn rate and accelerating market share across all regions.

    You're
    28%
    through

    Raising billions

    Zomato raised $250 million earlier this year ahead of IPO

    Even before Zomato's 2021 target for IPO, it managed to secure funding from investors such as Tiger Global a couple of months ago.

    The food delivery service raised $250 million from that investment round, which raised its valuation to $5.4 billion. That was prior to last year's $660 million primary investment round that had pegged its valuation at $3.9 billion.

    You're
    42%
    through

    Quote

    Zomato will continue to expand operations with IPO funds

    "We expect our costs to increase over time and our losses will continue given significant investments expected toward growing our business," said Zomato in its DRHP, while stating its desire to divert funding toward organic and inorganic growth.

    You're
    57%
    through

    Betting on growth

    Here's how Zomato plans to use the IPO funding

    Zomato stated that it will use 75 percent (Rs. 5,625 crore) of its expected IPO proceeds to fund organic and inorganic growth. The former includes ramping up customer acquisition, investing in delivery network, and shoring up technology infrastructure.

    The inorganic growth activities include seeking out acquisitions and other strategic initiatives. A good example of this was its 2020 acquisition of Uber's food delivery business.

    You're
    71%
    through

    Details

    Zomato continues to record impressive revenue growth

    Zomato's SEBI filing revealed an impressive year-on-year operations revenue growth from Rs. 466 crore in FY17-18 to a whopping Rs. 2,604 crore in FY19-20.

    The company's growth trajectory soared even higher last year owing to the rising demand for food delivery services on account of the pandemic combined with the eventual easing of lockdowns which left brick-and-mortar food establishments slow to recover.

    You're
    85%
    through

    Foresight

    Info Edge made handsome profit on its 2010 Zomato investment

    Zomato's principal investor Info Edge revealed that the IPO offering of fresh equity shares also includes its proposed offer for sale. The former's stocks value increased by three percent to Rs. 5,060 today as a consequence.

    Of Zomato's total capital gain from the IPO, the split includes a fresh issue of Rs. 7,500 crore, with Rs. 750 crore being Info Edge's stake.

    Done!
    Facebook
    Whatsapp
    Twitter
    Linkedin
    Related News
    Latest
    Zomato
    Startups

    Latest

    Virat Kohli desires to retire from Tests, informs BCCI: Report  Rohit Sharma
    J&K CM mourns death of officer killed in Pakistan shelling Omar Abdullah
    Surface-to-air missiles active in Srinagar, intense clash ongoing with Pakistan Jammu And Kashmir
    India strikes back, targeting four key Pakistan airbases in retaliation Indian Government

    Zomato

    Zomato 'forcing' us to deliver beef and pork: Delivery executives India
    Can't ensure veg/non-veg delivery preferences: Zomato to protesting riders West Bengal
    Amid Zomato's fight with restaurants, how will you be impacted? Gaurav Gupta
    Amid stand-off, Zomato to now launch Gold for delivery services Swiggy

    Startups

    OYO offers to buy Rs. 50cr shares from current, ex-employees India
    This IIT-Delhi student is offering low-cost smart home solutions India
    US-company selling used tissues. Motto: Get sick whenever you like Health & Wellness
    Discovery Channel to air documentary series on India's environment-friendly start-ups India
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2025