Zomato, one of India’s leading and largest food delivery startups, announced today it has filed for an IPO from which it plans to raise $1.1 billion.
To date, the 12-year-old company has raised $2.1 billion in total from the likes of Kora Investments, Tiger Global, and Ant Group, among other investors. Once public, it plans to list on the Indian Stock Exchange as NSE and BSE.
The company said it plans to invest 75 percent of its IPO proceedings into further building out its Zomato Pro subscription program as well as its business-to-business supply operation called Hyperpure.
Like most other restaurant-related companies, Zomato saw its fair share of ups and downs in 2020, including having to make cuts to its workforce about a year ago. However, the company has largely recovered from that, though its paperwork notes that the COVID-19 pandemic “has had and could impact our business, cash flows, financial condition and results of operators.”
According to its filing documents, Zomato has more than 350,000 active restaurant listings on its platform across 24 different markets. The company says it faces “intense competition,” citing Prosus-backed food delivery service Swiggy as its competition along with cloud kitchen operator Rebel Foods and restaurant chains like Domino’s and McDonald’s. Amazon entered the Indian food delivery market last year but is not named as a competitor in Zomato’s filing. Uber Eats, meanwhile, sold its India business to Zomato in March of 2020 for $206 million.
Earlier this month, chief rival Swiggy raised a whopping $800 million and is now valued at $5 billion. As yet, Swiggy has made no announcements around a potential IPO.