Indian food delivery company, Zomato Pvt, will apply for an initial public offering (IPO) in the first half of 2021. Tech companies like Zomato are set to raise more capital via IPOs in 2020 than at the height of the dotcom bubble.
“Our finance/legal teams are working hard to take us to IPO sometime in the first half of next year,” on Thursday, the Chief Executive Officer of Zomato Deepinder Goyal informed their employees in an email. Though Goyal has declined to comment on the size of the IPO.
“There are more big names joining the round, we estimate that our current round will end up with us at $600 million in the bank very soon,” Goyal added further. The investors are part of a $525 million round that, as per a filing with India’s company regulator, values the startup at $3.4 billion.
Zomato is one of India’s largest food delivery business, which is locked in a fierce battle with its rival Swiggy, which has backed by the likes of Tencent Holdings, Naspers Ltd., and DST Global among others. Both the companies are facing challenging business conditions due to the ongoing pandemic, but are continuing to win global investor support.
In his note to his employees, Goyal said, “ The best part is that our burn rate is very low and our market share is accelerating in all regions. We have no immediate plans on how to spend this money. We are treating this cash as a ‘war chest’ for future M&A and fighting off any mischief or price wars from our competition in various areas of our business”.
Source- The Print