New Delhi: After Ant Group-backed food delivery startup Zomato filed for an initial public offering in April, the company is now eyeing a listing valuation of $8.7 billion on the back of an allure of global technocrats and EM funds.
The company is yet to get SEBI nod for the IPO and aims to launch the issue by mid-July. According to Moneycontrol sources, the expected valuation for Zomato is at a premium to Hong Kong-listed delivery platform Meituan.
According to the report, Zomato has increased its primary fund by 20 per cent to $1.2 billion through IPO, while reducing the secondary part or offer for sale (OFS) by 50 per cent to $50 million. The OFS is likely by InfoEdge, which holds about 18 per cent stake in Zomato.
In April, the company had targeted a valuation of $ 9 billion through the issue. After the last fund raise, Zomato was valued at around $5.4 billion.
Ahead of its much-awaited IPO, the company amended its Memorandum of Association to become a public limited company in April, which was renamed Zomato Limited.
Meanwhile, Zomato has sought approval from the Competition Commission of India to acquire a 9.3 per cent stake in Grofers, according to the Economic Times. As per the report, the $100 million investment by Zomato is likely to turn Grofers into the newest unicorn. Gurugram-based grocery delivery startup Grofers had raised $120 million from IPO-bound food delivery platform Zomato, reports Moneycontrol.
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