Zomato, an India-based food delivery service backed by corporates Ant Group, Info Edge and Delivery Hero, listed on the National Stock Exchange of India and the BSE in a dual listing today.
The offering is open for subscription until Friday and the shares are priced between Rs 72 and Rs 76 ($0.96 to $1.02) each, giving the company an implied valuation of up to $8.6bn.
The company intends to raise approximately $1.25bn through the initial public offering, which involves it issuing about $1.2bn in new shares. Classified listings operator Info Edge is selling $50m of shares.
The company had planned to raise $1.1bn when it filed in April this year to float on the Securities and Exchange Board of India, which approved the listing last week. The company has already secured $562m of the IPO target, from a range of anchor investors, according to a stock exchange disclosure.
The anchor investors include insurer Tokio Marine, investment and financial services group Fidelity, Tiger Global Management, New World, Baillie Gifford, the Singaporean government, Canada Pension Plan, Mirae Asset, T Rowe Price and Steadview Capital.
Founded in 2008, Zomato initially concentrated on restaurant listings but later expanded its focus to on-demand food ordering before adding groceries and alcohol to its offering. It booked $283m in revenue in the fiscal year ending March 2021, a 23% reduction compared to the year before, while decreasing its net loss by 66% to $110m during the same period.
The company had previously received $1.45bn in funding, having most recently raised $250m in February 2021 at $5.4bn post-money valuation, with contributions from Fidelity, Bow Wave Capital Management, Kora Management, Tiger Global and Dragoneer Investment Group.
Zomato had completed a $660m series J round in December 2020 at a $3.9bn valuation featuring Fidelity, Tiger Global, Kora Management, D1 Capital Partners, Luxor Capital, Baillie Gifford, Mirae Asset and Steadview Capital.
Ride hailing app operator Uber took a 10% stake in Zomato in January 2020 through the divestment of its India-based Uber Eats subsidiary to the company, shortly after e-commerce firm Alibaba’s Ant Group affiliate provided $150m in funding, valuing it at $3bn.
Ant had already invested $210m in the company, participating in a round closed in early 2019 that included $50m from food delivery platform Delivery Hero and further funding from Glade Brook Capital, Shunwei Capital and Saturn Shine.
Zomato had first secured commitment from Ant in 2018 when the latter supplied $150m and acquired more shares through a $50m secondary purchase from Info Edge.
Temasek and Vy Capital co-led a $60m round for the company in 2015, following a $50m series F round led by Info Edge led a few months before, at which time the corporate owned a 50.1% stake. It had received $60m in a 2014 round led by returning investor Info Edge, and Sequoia Capital India was among its earlier backers.
