Foodtech unicorn Zomato plans to file IPO next month, looks to raise $650 million

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March 20, 2021 10:54 AM

Zomato recently raised $250 million from investors including Kora Management and Fidelity Management & Research Co., valuing the startup at $5.4 billion, according to an exchange filing in February by Info Edge India Ltd., an existing backer.

According to the Wednesday filing, Zomato had 161,637 active delivery partners and 350,174 active restaurant listings.

Zomato Pvt, an Indian food delivery startup backed by Jack Ma’s Ant Group, is planning to file the draft prospectus by April for its initial public offering that could raise about $650 million, according to people familiar with the matter.

The company could complete the listing in Mumbai before the end of September, the people said, asking not to be identified as the information is private.

Deliberations are ongoing and details of the offering such as size and timeline could change, the people said. A representative for Zomato didn’t immediately respond to requests for comment.

Founded in 2008 in Delhi, the company employs more than 5,000 people, according to its website. Zomato recently raised $250 million from investors including Kora Management and Fidelity Management & Research Co., valuing the startup at $5.4 billion, according to an exchange filing in February by Info Edge India Ltd., an existing backer.

Also read: CEA Krishnamurthy Subramanian: Startups very important in $5T goal; bring creative destruction | Interview

The pandemic has driven many Indian consumers to shift their spending online, bolstering the fortunes of e-commerce firms like Zomato as they aim to go public. Nykaa E-Retail Pvt, backed by TPG Capital, is planning to list the company in the local market and to seek a valuation of at least $3 billion, Bloomberg News has reported.

Global IPO volumes are heading for the best quarter since at least 2009 with more than $188 billion raised so far this year, data compiled by Bloomberg show.

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