Tech

Ant-backed Zomato soars in Indian market and debuts at $ 12 billion valuation

File Photo: The logo of the Indian food delivery company Zomato will appear on the mobile phone app that appears in front of the company’s website in this illustrated photo taken on July 14, 2021. REUTERS / Florence Lo / Illustration

July 23, 2021

By Anuron Kumar Mitra and Chandi Monnappa

Bangalore (Reuters)-Food delivery company Zomato Ltd’s stake almost doubled on Friday’s debut transaction and was listed on the first stock market of an Indian start-up company worth over $ 1 billion.

The four-day advance of the stellar debut is expected to thrive during the COVID-19 pandemic, reflecting investors’ interest in internet-based consumer startups when the Indian stock market is nearing its highest ever. ..

After opening at Rs 116 in a pre-IPO transaction, the stock surged 82.8%. This was a 52.6% premium over the initial public offering (IPO) price of Rs 76, and the company was worth about $ 12 billion.

Zomato’s Rs 93.75 billion IPO, backed by Ant Group in China, is the first start-up in the Indian food delivery market and research firm RedSeer estimates it is worth $ 4.2 billion.

Launched in 2008, Homemade Food Aggregator operates in approximately 525 cities in India and is affiliated with nearly 390,000 restaurants.

By providing food delivery, allowing customers to book meal tables and match restaurant reviews, it has become a competitor to SoftBank-backed Swiggy and Amazon.com food delivery services.

Last week, the company’s offer was more than 38 times more oversubscribed, and large institutional investors also made big bets, raising $ 46.3 billion worth of bids.

“Growth is key here. Zomato may not be profitable, but it is growing exponentially and we are in an enviable position to maintain that momentum,” said the UK investment platform. AJ Bell financial analyst Danni Hewson said.

Zomato’s loss for the year ended March 31 shrank to Rs 8.13 billion, but operating revenue fell slightly year-on-year to Rs 19.94 billion.

($ 1 = 74.5250 Indian Rupee)

(Report by Chandini Monnappa and Anuron Kumar Mitra in Bangalore, edited by Arun Koyyur)



Ant-backed Zomato soars in Indian market and debuts at $ 12 billion valuation

Source link Ant-backed Zomato soars in Indian market and debuts at $ 12 billion valuation

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