Food Delivery Start-up Zomato Planning To File $650 Mn IPO Next Month

Zomato, a food delivery start-up backed by Jack Ma’s Ant Group, is planning to file the draft prospectus by April for its initial public offering that could raise about $650 million, according to people familiar with the matter.

The company could complete the listing in Mumbai before the end of September, the people said, asking not to be identified as the information is private.

Deliberations are ongoing and details of the offering such as size and timeline could change, the people said. A representative for Zomato didn’t immediately respond to requests for comment.

Founded in 2008 in Delhi, the company employs more than 5,000 people, according to its website. Zomato recently raised $250 million from investors, including Kora Management and Fidelity Management & Research Co., valuing the start-up at $5.4 billion, according to an exchange filing in February by Info Edge India, an existing backer.

The pandemic has driven many Indian consumers to shift their spending online, bolstering the fortunes of e-commerce firms like Zomato as they aim to go public.

Nykaa E-Retail, backed by TPG Capital, is planning to list the company in the local market and to seek a valuation of at least $3 billion, Bloomberg News has reported.

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