Indian food delivery startup Zomato files for an IPO

Indian food delivery startup Zomato on Wednesday filed for an initial public offering, becoming the first tech unicorn startup from the world’s second largest internet market to do so in recent years.

The 12-year-old Gurgaon-headquartered Indian startup, which counts Info Edge and Ant Group among its investors, has set $1.1 billion as its IPO size and will look to raise about $1 billion by issuing shares, it said in the filing.

Some key insights shared by Zomato in the filling:

    • Zomato has claimed market leading position in the food delivery market. The startup identified Prosus Ventures-backed Swiggy, as well as restraunts such as Domino’s, McDonalds and Pizza hut as its competitor. (But not Amazon, which entered the food delivery market last year.)
    • The startup clocked $183.6 million in revenue between April 1 and December 31. Its losses during this period were $91.8 million.
    • The startup said it has a history of net losses, and it anticipates increases expenses in the future.
    • Info Edge, one of the biggest investor of Zomato, plans to sell stake worth $100 million, the investment firm said in a filing.
    • Among over a dozen things that Zomato has identified as risk factors, one is “changing regulation in India.”

This is a developing story. More to follow…

Source: TechCrunch

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