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Food Delivery Company Zomato Will Raise $1.26bn In IPO, Say Sources

Published on Jul 22 2021 10:00 AM in Food tagged: Zomato

Food Delivery Company Zomato Will Raise $1.26bn In IPO, Say Sources

Indian food delivery start-up Zomato Ltd will raise $1.26 billion by pricing its shares at 76 rupees each in its initial public offering (IPO), according to two sources with direct knowledge of the matter.

The sources could not be named as the information has not yet been made public.

Zomato did not immediately respond to a request for comment.

The company, which is backed by Ant Group, will be valued at up to $8 billion following the IPO which is the first for a food delivery group in India.

The pricing is set at the top of the flagged range of 72 rupees ($0.9649) to 76 rupees each at the start of the booking building process.

Zomato Information

Zomato, launched in 2008, collates restaurant reviews and offers home delivery of food, making it a competitor to the Swiggy and Amazon.com's food delivery service.

Swiggy was reported to have raised $1.25 billion in a private funding round from the likes of SoftBank's Vision Fund 2 and Prosus.

Zomato's IPO was strongly backed by investors attracting bids worth $46.3 billion as it was more than 38 times oversubscribed when the books closed on Friday July 16, signalling confidence about the fast-growing sector.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.

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