Frenzied appetite for India food delivery giant Zomato’s IPO

Shares of Indian food delivery giant Zomato soared on its market debut Friday, following a 93.75 billion rupee ($1.3 billion) IPO, the country’s biggest this year.

Around 30 Indian companies have announced plans to list shares this year, with start-ups attracting billions of dollars in investment even though many are yet to make a profit.

Zomato, which counts subsidiaries of Chinese tycoon Jack Ma’s Ant Group and Uber among its shareholders, dominates India’s booming app-based food-delivery space alongside rival Swiggy.

Its shares debuted at 115 rupees on the Bombay Stock Exchange’s Sensex Index, 51 percent higher than its issue price after its IPO was subscribed 40.38 times at the end of last week.

The stock then rocketed up 80 percent in the opening 10 minutes, taking Zomato’s market capitalisation across the one trillion rupee mark.

India’s economy has taken a battering during the pandemic, recording its worst annual recession since independence in 1947. But its start-up sector has been a rare bright spot.

This year alone, around 20 “unicorns” — firms valued at more than a billion dollars — have been created, including half a dozen in four days in April.

Many are struggling to recruit qualified employees, with some reportedly offering incentives such as free motorbikes and tickets to cricket matches to lure talent.

This year is set to be India’s best for IPOs. Others set to list include digital payments firm Paytm, backed by Japan’s SoftBank and Ma.

Many of the start-ups, though, are loss-making.

Zomato for instance, which operates in 525 Indian cities, is yet to turn profitable and reported a loss of 8.16 billion rupees in the financial year ending March 2021.

“We are going to relentlessly focus on 10 years out and beyond, and are not going to alter our course for short-term profits at the cost of long-term success of the company,” Zomato’s chief executive Deepinder Goyal said Friday.




Related Links

Car Technology at

Thanks for being there;

We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook – our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don’t have a paywall – with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.

SpaceDaily Monthly Supporter

$5+ Billed Monthly

SpaceDaily Contributor

$5 Billed Once

credit card or paypal


Uber buys trucking software firm for $2.25 bn

San Francisco (AFP) July 22, 2021

Uber on Thursday announced a $2.25 billion deal to beef up its freight unit with the acquisition of a firm specializing in logistics management software.

Combining Texas-based Transplace with Uber Freight will create a huge, comprehensive transportation and logistics network, the companies said in a joint release.

“The acquisition will combine the world’s premier shipper network platform with one of the industry’s most innovative supply platforms,” said Transplace chief executive Frank McGuigan. … read more

Read More

Related posts

Everyone’s Invited: Follow Your Heart is Here to Infuse Plant-Based Foods Into Your Summer Block Parties, Offering Delicious Options for All


Senators ask FDA leaders if food safety is a priority at the agency


Popular rural Tassie food and music venue calls for council's support in neighbourly dispute


SHS food shortages: Gov’t owing Buffer Stock GH¢340m – Education Minister


Get exclusive recipes,
tips and more!

Leave a Reply

Your email address will not be published. Required fields are marked *