Zomato IPO Might See An Investment From State-Owned LIC
- ByStartupStory | July 12, 2021
State-owned Life Insurance Corp. of India (LIC) is weighing a bid for Zomato’s shares in the online food delivery platform’s initial public offering this week, the source revealed. further adding, LIC, which typically invests in secondary markets unless the public issue is a part of the government’s divestment programme, is expected to bid for shares in the upcoming IPO of Zomato. “Zomato’s growth curve demonstrates how rapid India’s transition to the internet economy has been.’’
Zomato’s valuation has surged from around $5.4 billion in January to over $8 billion in June as the pandemic has boosted the popularity of online platforms as people avoid going out for fear of contracting infections. India’s largest online food ordering platform is looking to raise as much as ₹9,375 crore in the public issue. It will be the first of a bunch of Indian consumer internet unicorns that will go public in the next few months. Zomato’s shares are priced between ₹72 and ₹76 apiece and will open for subscription on 14 July.During FY21, 32.1 million average monthly active users visited its platform in India. The company is present in 525 cities in India and has about 390,000 active restaurant listings. omato is expected to report its first profit and record an operating revenue (commissions on deliveries) of $1.4 billion by the financial year 2023, according to a 7 July note to clients by Edelweiss. That is four times more than the $350 million recorded in FY20.
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