Zomato raises $562 million from anchor investors ahead of IPO

Indian food delivery startup Zomato on Tuesday evening said it has raised $562.3 million from its anchor investors ahead of the IPO opening on Wednesday.

Zomato, which calculates Ant Financial, has already secured about 45% of the $1.3 billion it plans to raise through an IPO, a 12-year-old Gurgaon-headquartered startup. manifest In filings to the local stock exchanges. The public share sale will open on Wednesday and close on Friday.

Tiger Global, Fidelity, New World, Bailey Gifford, Government of Singapore, Canada Pension Plan, Mirae Asset, T. Rowe Price and Steadview are among the investors backing startups in the public markets.

Investors have subscribed the shares at Rs 76 ($1) – the upper end of the price range for Zomato shares – from $5.4 billion in February this year, giving the Indian startup an estimated valuation of $8.6 billion.

The oversubscription shows high-profile investors believing in the world’s second largest Internet market’s first real consumer Internet offering.

In a virtual press conference last week, Zomato executives said that the startup, which has search and search operations in nearly two dozen markets, will primarily focus on India and explore categories like online grocery delivery in the future.

Officials dismiss Amazon as a serious competitor for now. The company’s chief financial officer said, “Amazon’s market share has not been significantly affected so far. Amazon entered the food delivery market last year and is only operating in Bangalore for now. Swiggy, backed by SoftBank Vision Fund 2 and Prosus Ventures, is Zomato’s main rival in India.

For the fiscal year that ended in March this year, its revenue fell 23% to $283 million, and it also narrowed its losses to $110 million, down 66% from the same period a year ago.

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories