Zomato files DRHP for $1.1B IPO

Zomato IPO

Food delivery major Zomato has filed its Draft Red Herring Prospectus for its IPO with the market regulator on Wednesday.

According to the filing, the IPO size will be Rs 8,250 crore or $1.1 billion and the foodtech startup will raise fresh capital of $1 billion. The company may also consider a pre-IPO placement to raise additional Rs $200 million.

Zomato has finalized Kotak Mahindra Bank, Morgan Stanley, Citi Bank, Credit Suisse, and Bank of America as bankers and has received a nod from BSE and NSE for the IPO.

Zomato stated that it recorded a revenue of Rs 13,01.35 crore in the first three quarters of FY21 and the total loss for the nine months was reported at Rs 682.2 crore. The company’s net worth also increased by 204% to Rs 6,330.70 crore in FY21 from Rs 2,083.08 crore in FY20, the DRHP added.

Zomato was valued at about $5.4 billion when it raised $250 million in a round led by Kora in February 2021. Info Edge, one of its earliest backers, holds a nearly 18.55% stake in Zomato.

The news comes a day after Info Edge, in a stock exchange filing, announced that it will sell its stake worth Rs 750 crore or $100 million in the upcoming IPO of Zomato.

“This is to inform you that Zomato Limited is proposing an IPO of its equity shares, comprising a fresh issue of Equity Shares by Zomato Limited (“Fresh Issue”) and an Offer For Sale by Info Edge (India) Limited (Offer For Sale”),” said Info Edge in the stock exchange filing on Tuesday.

Earlier this month, Zomato had changed its holding entity from a private company to a public limited company. Last week, the company also announced to appoint its co-founder and CEO Deepinder Goyal as the Managing Director for the next five years. 

Zomato is a leader in the foodtech segment and with a successful IPO will be able to grow its business further.

Shishir Gupta, Founder and CEO, StartupLanes

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