Zomato IPO

Zomato is a global network that integrates over 55 million consumers with restaurants in 24 nations Daily. They strive to provide better food to a greater number of individuals through restaurants. Zomato IPO will hit the market in 2021.

They push consistency, connectivity, assortment, and affordability in order to achieve this and ensure that restaurants are a fantastic option to home cooking. Daily, Zomato aligns itself to 4 parameters QAAA.

Journey

Zomato began as a platform that offered restaurant information to help visitors make better choices before hanging out, established by Deepinder Goyal and Pankaj Chaddah in 2008. Zomato is now on a mission to transition from a food tech business to a farm to table firm.

Since their establishment in 2008, they have grown dramatically and now have a workforce of over 5000 Zomans from 32 nationalities who assist millions of customers daily choose where to eat from 1.4 million restaurants featured or deliver over 28 million food orders per month.

Footprints

As per RedSeer, as of December 31, 2020, they were among India’s largest Food Services companies in terms of value of food sold. In India, 41.5 million typical MAU visited their platform in Fiscal 2020. They were available in 526 cities across India as of December 31, 2020, with 350,174 verified restaurant listings.

According to App Annie’s estimations, their mobile app has been the most popular food and beverage app in India for the previous three years, on both the iOS App Store and Google Play together.

While they have a presence in 23 nations other than India as of December 31, 2020, they have made the business decision to concentrate their efforts just on the Indian market going ahead.

Valuation

Several investors have contributed to their success, and they have raised over 600 million dollars in investment to date. With a billion dollar asset value in 2015, Zomato was designated as a unicorn, and its value has since doubled.

Services

Zomato also offers services to the entire food supply chain, such as:

1. Restaurant Feedback and Rankings
2. Food Delivery of Ordering Online
3. Hyperpure: Materials Supply to restaurants
4. Restaurant Identification & Browsing
5. Pick-up: Selling Takeaway Food
6. Reservation of Table in Restaurant
7. Food@Work: Cafeteria
8. Gold: Restaurant exclusive membership programs

Zomato Pro

Zomato Pro is an exclusive premium membership programme that gives our clients flat % discounts at chosen restaurant partners for both meal delivery and dining-out.

These benefits are accessible to loyal customers on any day of the year (with the exception of a few pre-determined special days), and Pro Restaurant Partners pick and finance the % discount offered to Pro Members at their eateries.

By spending a membership fee, their clients become Pro Members. Pro Restaurant Partners can use the programme to advertise themselves to a targeted audience.

They have 1.4 million Pro Users and over 25,350 Pro Restaurant Operators in India as of December 31, 2020.

Delivery Partners

Their delivery partners play an important role in their community. Their business’s size allows a big number of Indians in different cities to make money.

In December 2020, they had 161,637 operational delivery partners, and they are the backbone of their meal delivery company.

Their delivery partners, who carry and wear Zomato branded clothing, help us to provide a realistic service to their consumers, improve brand recognition, and develop strong brand recognition.

all of which They think will result in lower client conversion costs. Their delivery partners, they think, work with them because they provide them with clear and flexible earning options.

Financials Trends

Basic and Diluted Earnings Per Share (EPS)

Issue

Zomato Limited, headquartered in New Delhi has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 8,250 crore on 27 April,  2021.

According to drhp filed by the company to SEBI, the firm is ready to be the first across a rising tribe of Indian tech startups seeking a listing this year.

They planned to collect INR 8250 cr via its initial public offering (IPO).  There is a fresh issue of 7500 cr. and offer for sale is around 750 cr. mentioned in the drhp of the company.

They got approval from Securities and Exchange Board of India(SEBI) on 03 July, 2021 to float the initial public offering (IPO) in the market.

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of The offer

• Their innovative content and transaction flywheels create powerful network impacts.
• Their on-demand home delivery delivery network is broad and reliable.
• Their customer-centric strategy to business is based on technology and products.
• Their powerful consumer identity, which is well-known throughout India.

Zomato IPO Tentative Details

IPO Tentative Date

Zomato IPO opening date is 14 July 2021, and the closing date 16 July 2021. The issue may list in 23 July 2021.

Basis of Allotment

Zomato IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Zomato IPO.

Zomato IPO GMP

Zomato IPO Grey Market Premium is as follows and you can check GMP of other IPOs as well from links given below:

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Zomato IPO Review

Zomato IPO is looking promising for long term investors. Whereas listing gain will be decent if Overall stock market remain bullish till the date of listing.

Zomato IPO Risk

• They may not be able to maintain their current growth rates, and their past success is not necessarily predictive of forward growth or financial outcomes.
• They have a history of financial losses, and they expect future costs to rise.
• The COVID-19 pandemic, or a comparable public health concern, has had an impact on their company, cash flows, financial position, and results of operations, and might have an even bigger influence in the future.
• Their company may suffer if we are unable to retain existing restaurant partners, clients, or delivery associates or if they are unable to add new restaurant partners, delivery associates or consumers to their portfolio in a cost-effective way.

Other Threats

• Unpleasant media coverage might have a negative impact on their company, financial position, and operational results.
• In the food delivery and other sectors, they face strong rivalry and if they are unable to operate successfully their company, financial situation, cash flows, and performance of operations may suffer.
• They may not be able to stay effective if they do not continue to develop and continuously improve their system, or if their platform advancements do not function as expected, or if they are unable to keep up with technical changes.
• Their business might suffer if we don’t produce and retain enough high-quality customer-generated information.

Zomato IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Zomato IPO Subscription

Peer Comparison

There are no publicly traded firms in India with a range of products and services equivalent to theirs, or a scale of operations comparable to theirs.

Principal Shareholders

1. Info Edge
2. Alipay and Antfin

Principal Shareholders Holding

Zomato IPO Prospectus