Zomato to file IPO in April, raise $650 million

Zomato is planning to file the draft red herring prospectus for its initial public offering in April. In the works for a long time, the issue could help the Indian food delivery platform raise $650 million.

The Deepinder Goyal-led company could complete the listing in Mumbai before the end of September, Bloomberg reported while quoting sources in the know. Deliberations are underway and the details of the IPO, like issue size and timeline might change, the report further said.

Zomato is yet to confirm these developments.

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Last month, Zomato had raised $250 million from five investors. The company raised $115 million from Kora Management LP,  $55 million from funds or accounts advised or sub-advised by Fidelity Management & Research Company LLC and its affiliates,  $50 million from Tiger Global Management, LLC, $20 million from Bow Wave Capital Management, LP and $10 million from Dragoneer Investment Group, LLC.

The primary fundraising round had valued Zomato at a post-money valuation of $5.4 billion.

Zomato had raised $160 million from Tiger Global and Temasek Holdings' subsidiary MacRitchie Investments in September last year, valuing the company at $3.3 billion. It had also raised $150 million in January 2020.

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Zomato's IPO is expected to value the company at $6-8 billion in the public market. The food delivery startup has appointed Goldman Sachs, Kotak Mahindra Bank, Morgan Stanley and Credit Suisse to run its IPO process.

Founded in 2008, Zomato currently has 5,000 employees on its payroll. Zomato's revenue from operations grew to nearly Rs 2,605 crore in FY20 from Rs 1,312.6 crore in FY19. However, its losses widened to Rs 2,385.6 crore during the fiscal ended March 31, 2020 from Rs 1,001 crore in FY19.

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