News Update

Young First-Time Investors Driving Demand For Zomato IPO On Paytm Money

• BySheetal Sidhu     |    July 15, 2021

A Paytm Money study on the much-awaited Zomato IPO outlined some interesting shifts in investing trends, such as a lot more youngsters applied to buy the food delivery giant’s shares versus older retail investors. 27 percent of those who applied for Zomato’s IPO on Paytm Money on day one were under the age of 25, the study showed, while 60 percent were under 30 years of age. The average investor in Zomato’s IPO was a year younger than applicants Paytm Money has seen for other IPOs on its platform, the Noida-based firm said. Zomato has generated strong interest not only from anchor investors but also retail investors. Its retail portion was subscribed by over 200 percent within the first couple of hours of opening on July 14.average investment in Zomato’s initial public offering was 20 percent higher than the average investment in any other IPO on Paytm Money, it said.

Angel Broking equity strategist Jyoti Roy, said, “Zomato has been able to reduce its losses in FY21 despite degrowth in topline (due to COVID-19). We expect losses to reduce further over the next couple of years due to rebound in growth and improving unit economics,”  further adding, “Given the strong delivery network, high barriers to entry, expected turnaround, and significant growth opportunities in Tier-II and III cities, we believe Zomato will command a premium to global peers and hence have a ‘subscribe’ recommendation on the IPO.” Nearly 22 percent of those who applied for Zomato’s IPO on Paytm Money were new-to-industry investors, a study conducted by the fintech giant’s online investing arm showed.

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