India-headquartered food delivery service Zomato filed for an Rs 82.5bn ($1.1bn) initial public offering today, with classified listings operator Info Edge set to sell $100m of shares.
The company is planning a dual offering on the National Stock Exchange of India and the BSE – both in its home country – and is considering raising a further $200m through a private placement prior to the IPO.
Zomato began life as an online restaurant listings platform but its core business domestically is now its app-based food ordering service. It generated $186m in income in the last nine months of 2020, making a loss of $92.7m.
The offering will come in the wake of roughly $1.45bn of funding, the most recent of which involved Zomato raising $250m in February this year at a $5.4bn valuation.
Investment and financial services group Fidelity, Bow Wave Capital Management, Kora Management, Tiger Global Management and Dragoneer Investment Group supplied the funding.
The company had closed a $660m series J round in December 2020 valuing it at $3.9bn post-money, with Fidelity, Tiger Global, Kora Management, D1 Capital Partners, Luxor Capital, Baillie Gifford, Mirae Asset and Steadview Capital all investing.
On-demand ride provider Uber had acquired a 10% stake in Zomato through the January 2020 divestment of its local Uber Eats business to the company, less than two weeks after Ant Group, the financial services affiliate of e-commerce firm Alibaba, invested $150m at a $3bn valuation.
Ant had previously provided $210m for a round that closed in early 2019 and which included $50m from food delivery service Delivery and additional capital from Glade Brook Capital, Shunwei Capital and Saturn Shine.
Zomato first raised funding from Ant in 2018 when it invested $150m and bought another $50m of shares through a secondary deal. Temasek and Vy Capital co-led a $60m round for the company in 2015 after Info Edge led a $50m series F earlier in the year, at which point it owned a 50.1% share.
The company had received $60m in a 2014 round led by existing backer Info Edge and its earlier investors also include Sequoia Capital India.
Info Edge is the company’s largest shareholder, with an 18.5% stake according to the IPO filing. Ant holds a combined 16.5% through its Alipay Singapore and Antfin Singapore vehicles while Uber owns 9.1% of its shares.
The company’s other notable investors are Tiger Global’s Internet Fund VI and Sequoia India (6% each), D1 Capital Partners (3.8%) and Temasek (3.7%), while Delivery Hero’s stake stands at 1.6%.
Kotak Mahindra Capital, Morgan Stanley India and Credit Suisse Securities (India) are global coordinators and joint book-running managers for the offering while BofA Securities India, Citigroup Global Markets India and Link Intime India are bookrunning lead managers.
