Foodtech giant Zomato has converted itself into a public limited company from a private company, taking another step ahead towards initial public offering (IPO). The company is likely to go public this year.
The food-delivery app is planning to raise $750 million to $1 billion via primary stake sale. The company, which started off as a restaurant discovery and review platform, recently closed a $250 million primary funding round with another $250 million of shares being sold by existing investors like China’s Ant Financial, ET reported on January 27.
Regulatory filings showed Zomato is readying to file a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) and relevant stock exchanges within this month.
Zomato increases paid-up capital in pre-IPO move
Several homegrown startups including Paytm, PhonePe and Policybazaar are said to eyeing public listings in FY22. The Zomato IPO could lead the way.
Synopsis
Zomato has restructured its capital base to create 8.80 billion new shares, increasing the paid-up capital of the company by three times ahead of a planned IPO.
Mumbai: Indian restaurant aggregator Zomato has hit the ground running on what could be the first initial public offering (IPO) by a homegrown unicorn. The Gurgaon-based company has restructured its capital base to create 8.80 billion new shares, increasing the paid-up capital of the company by three times from Rs 535 crore to Rs1,448 crore, the latest regulatory filings showed.
With the fresh capital, Zomato is expected to have a valuation of $5.5 billion and $1 billion in cash as it inches closer to an initial public offering (IPO) by June this year.