Indian food tech startup Zomato has filed for an IPO to raise $1.1 bn. It has become the first Unicorn to file for an IPO in the country which is also the second-largest internet market across the globe. Zomato is a 12-year-old Gurgaon-based startup and has Info Edge and Ant Group among its investors. It clocked $183.6 mn in revenue between April 1 and Dec 31 2020 and made losses of $91.8 mn during the period. The startup employs 3,469 people across the globe.
Zomato, the food-delivery app which is one the most successful Indian tech startups, is expected to raise over $750 mn to $1 bn through its IPO. No investor will likely exit or take money off the table by selling their shares. Deepinder Goyal, co-founder and CEO of Zomato said that the IPO will probably be a 100% primary offering and the company might end up raising more capital, rather than shareholders offloading stock in the open market.
Zomato has shuffled top executives in the company. Akshant Goyal, who was head of corporate development, has been named as new CFO. While Outgoing CFO Akriti Chopra will now head people development. Zomato has been valued at $3 bn, after the latest $600 mn funding round. The food deliver apps Founder and CEO Deepinder Goyal, last month, said the internet company was on course to go public by mid of 2021.
Zomato and Swiggy have received notices from Google for their in-app gamification features that allegedly violates the tech giant’s Play Store guidelines. Zomato termed the notice as “unfair” and said it has already re-aligned business strategy to comply with Google’s guidelines. The company will be replacing Zomato Premier League with another program by the weekend. Swiggy has paused the in-app feature and is in conversation with Google on this issue.
Alibaba Group, as per a Reuters report, has put on hold on plans to invest in Indian companies following the rise of geopolitical tension between India and China. The Chinese internet giant will not put funds in any new Indian start-ups or companies for at least six months, said the report. The company, however, has no plans to exit or reduce its investments of over $2 bn in Indian firms. Alibaba’s investee companies include Paytm, Zomato, and BigBasket.