IPO-Bound Zomato Goes Public

By siliconindia  |  Thursday, 15 April 2021, 11:46:55 AM IST

IPO-Bound Zomato Goes Public

Foodtech major, Zomato has transformed itself into a public company from a private organization. The company has been preparing to get listed on the exchanges in the forthcoming months. Thus, it has also taken up a corporate restructuring in order to shift itself from a private limited company to a public company, according to the regulatory filings.

In a filing, the company states, “The Company was originally incorporated as a private limited company on January 18, 2010, and the company wish to convert itself into a public company. The members were hereby informed that the company is considering the filing of a draft bluff prospectus with the Securities and Exchange Board of India (Sebi) and relevant stock exchange(s) and listing of the equity shares on one or more of the stock exchanges. To undertake the same, the company need to be converted into a public limited company.”

Thus, the firm’s name has been altered to Zomato Limited from Zomato Private Limited.

The food-tech firm has been planning to launch an IPO in the first half of this year. Its Founder and CEO Deepinder Goyal had announced the news last year in an internal mail to employees. However, the Media reports has estimated the size of the IPO to range between $650 million to $1 billion.

Thus, lately, the firm has been on a fundraising spree, and has gathered about $910 million from a clutch of investors through 2020 and in early 2021. At present, Zomato’s valuation is estimated to be $5.4 billion.

Alongside, the food delivery business grew manifold amid the pandemic as home-bound consumers preferred to order their food online. Thus, Zomato claims to have attained close to 60 percent 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 75 crore in a single day.

Zomato is among a batch of startups that are looking to go public in the coming months. Companies such as Grofers ,  PolicyBazaar, and Delhivery are already focused on that front. Byju Raveendran led ed-tech major Byju’s is also eyeing to go for an IPO in the next 18-24 months, stated its founder & CEO in a recent media interview.

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