India's Zomato has bumper debut

Finance | 23 Jul 2021 2:45 pm

Shares of food delivery firm Zomato Ltd nearly doubled on Friday in a stellar first listing of a local unicorn in India, setting the pace for a slew of such debuts by internet-based start-ups that are thriving during the pandemic, Reuters reports.

Berkshire Hathaway Inc-backed Paytm, hospitality company Oyo Hotels and ride-hailing firm Ola, both backed by SoftBank, are among the Indian startups set to enter markets, riding on support from foreign funds and local investors.

Shares of Zomato soared by 82.8 percent after opening at 116 rupees in pre-open trade, a 53 percent premium to the offer price of 76 rupees for the 93.75 billion rupees IPO, valuing the company at about US$12 billion.

Ant Group holds a 16.53 percent stake in Zomato, while its top shareholder is online technology company Info Edge (India), which holds a 18.55 percent stake.

"Today is a big day for us...we couldn't have gotten here without the incredible efforts of India's entire internet ecosystem," Zomato's founder and Chief Executive Deepinder Goyal said https://bit.ly/3kHPT3Y in a blog post.

Goyal, 38, an alumnus of the Indian Institute of Technology in Delhi, launched Zomato in 2008 with fellow graduate Pankaj Chaddah.

As of March 31, it operated in about 525 cities in India and has partnered with close to 390,000 restaurants.

It is the first startup to go public in India's food delivery market, which research firm RedSeer estimated is worth US$4.2 billion.

It offers home delivery of food, allows customers to book tables for dining-in and collates restaurant reviews, making it a competitor to SoftBank-backed Swiggy and Amazon.com's food delivery service.

The company's offering last week drew bids worth US$46.3 billion, making it more than 38 times oversubscribed, with big institutional investors placing major bets.

 



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