Zomato, India’s largest online food delivery platform, plans IPO valuation to $10 billion amid a surge in online food-ordering, restaurant-bookings and subscriptions for Zomato Pro businesses, two people familiar with the development said.
Recently, the valuation is more than $8 billion the company was seeking about three months ago. Later this month, Zomato is expected to launch its share sale to become the first top unicorn to go public.
“The IPO pricing for Zomato will be done in line with the rise in investor demand that values the company higher than the levels three months back,” one of the two people cited above said, requesting anonymity.
Zomato will be the first among India’s mega startups to access public markets. Paytm, Flipkart, Walmart Inc are online insurance platforms Policybazaar and cosmetics and garments retailer Nykaa are also readying to go public.
The Zomato IPO will see a dilution of 10-15 per cent, mainly through a fresh issue of shares and an offer for sale (OFS) by its early investor Info Edge (India) Ltd.
“The total value of shares to be offered in the IPO plus OFS could be around $1.5 billion, which, too, is an increase from the original plan to raise around $1.1 billion,” the first person said.
Zomato’s existing investors include Info Edge 18.55 per cent, Uber BV 9.13 per cent, Alipay Singapore Holding Pte Ltd 8.33 per cent, Antfin Singapore Holding Pte Ltd 8.20 per cent, Tiger Global 6 per cent, Sequoia Capital (5.98 per cent, co-founder Deepinder Goyal 5.51 per cent, Temasek Holdings subsidiary 3.65 per cent and a few others.