India’s food delivery portal Zomato aims for $8b IPO

Delhi: The Indian food delivery company Zomato's IPO is priced at Rs72 to 76 per share, giving it a valuation of as much as $7.98 billion.

Zomato, backed by China's Ant Group and one of India's most prominent startups, said its offer will include a fresh issue of shares worth up to Rs90 billion and a share sale worth up to Rs3.75 billion by top shareholder Info Edge (India), taking the total offering to Rs93.75 billion ($1.25 billion) according to a BSE filing.

At the upper end of the price range, Zomato's market value comes up to Rs596.23 billion ($7.98 billion), with subscription set to open on July 14. Zomato, launched in 2008, collates restaurant reviews and offers home delivery of food, making it a competitor to Accel-backed Swiggy and Amazon's food delivery service.

"While we had a footprint across 23 countries outside India as of March 31, we have taken a conscious strategic call to focus only on the Indian market going forward," Zomato said in its prospectus. In India, an ongoing wave of COVID-19 has pushed many patrons towards ordering in, a trend that has helped companies like Zomato and its peers.