Zomato Converts Into Public Company Ahead of IPO

As Zomato gears up to get listed on the exchanges in the coming months, the firm undertook a corporate restructuring to convert itself from a private limited company to a public company, regulatory filings sourced from the business intelligence platform Tofler showed.

“The company was originally incorporated as a private limited company on January 18, 2010, and the company wishes to convert itself into a public company. The members were hereby informed that the company is considering the filing of a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) and relevant stock exchanges and listing of the equity shares on one or more of the stock exchanges. To undertake the same, the company is required to be converted into a public limited company,” the company said in the filings made earlier this month. The name of the company has been changed to Zomato Limited from Zomato Private Limited, the filings showed.

The Gurgaon-based food-tech firm plans to launch an IPO in the first half of this year, founder and CEO Deepinder Goyal had said last year in an internal mail to employees. Media reports peg the size of the IPO at anywhere between $650 million to $1 billion. The company has been on a fundraising spree, garnering about $910 million from a clutch of investors through 2020 and early 2021. The firm’s valuation currently stands at $5.4 billion.

Food delivery business grew manifold amid the pandemic as home-bound consumers took to online ordering of food. Zomato claims to have clocked nearly 60% higher GMV (gross merchandise value) on New Year’s Eve 2020 over last year. To put this in perspective, it translates into a GMV of Rs 75 crore in a single day.

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