Zomato, the online food delivery service provider, is set to raise Rs. 9,375 crore through an Initial Public Offering (IPO), which opens for subscription on July 14 and closes on July 16. The price band is expected to be in the range of Rs 72-76 per share and investors can bid in lots as well. A single lot consists of 195 shares and a retail investor can bid for a maximum of 13 lots. Ahead of the IPO, the food delivery platform has also promoted its Chief People Officer Akriti Chopra to a co-founder.
The company has acquired 14 ventures to date according to CrunchBase, with the most recent one being Fitso, a fitness-based mobile app. In January 2021, Zomato acquired Uber Eats. Before that, in September 2018, the food delivery platform bought TongueStun, a Bengaluru-based start-up that aggregates caterers and restaurants for office canteens. Among other acquisitions, over the years, are Runnr, Sparse Labs, NexTable, Urbanspoon, and Cibando etc.
In total, Zomato has raised roughly Rs. 15,629 crore, spread over 21 rounds, with the latest being as recent as February 2021. The company is funded by 25 investors and its most recent investor is Fidelity Management and Research Company and Tiger Global Management. It's also backed by Temasek, Baillie Gifford, Kora, Luxor, Fidelity (FMR), D1 Capital, Baillie Gifford, Mirae, Steadview, and Ant Financial.
The company has made three investments to date. It invested Rs. 111 crore in Loyall Hospitality, Rs. 1.25 crore in TinMen, and Rs. 10.42 crore in Grab. Zomato has had one exit, Grab. Zomato claims that it connects over 55 million users to restaurants in 24 different countries.
In May 2021, the company announced layoffs of around 520 people or 13 per cent of its total global workforce, consisting of nearly 4,000 employees to reduce the economic impact of the novel coronavirus pandemic. Not just that, it also announced a temporary pay cut of up to 50 per cent for its remaining employees that has come into force from June.
Zomato says that it intends to utilise the proceeds from IPO to fund organic and inorganic growth initiatives and for general corporate purposes.