InvestorQ : Is it true that Zomato may be planning its IPO very soon?
Riya Dwivedi made post

Is it true that Zomato may be planning its IPO very soon?

shrinidhi Rajan answered.
2 years ago

While the actual dates of the IPO are still not known, one thing is certain that Zomato is riding the online food order wave in India and is getting valuations to boot. In fact, the latest funding by Kora values Zomato at Rs.37,850 crore or close to $5.15 billion. This is nearly 60% higher than the previous funding round when Zomato was valued at $3.24 billion.

The pre-IPO fundraising, while timelines are not set, could be as high as $500 million. In addition, Antfin of Singapore is looking to sell part of its stake in Zomato and is expected to earn around 70% return on its investment. The way the funding rounds are getting more aggressive is a clear indication that the IPO could happen sooner rather than later.

Zomato may also look to push through the IPO plans when online food service companies are witnessing peak demand. Some analysts are quite apprehensive that if things normalize and the consumers become confident of eating out, then they may opt not to pay steep delivery fees. Clearly, Zomato wants to hit the IPO market before that.