The food delivery giant Zomato is coming up with the IPO. It is estimated that the Zomato IPO will be launched in the first half of the year 2021. Zomato is one of the biggest online food ordering company in India. The company has managed to increase its revenue from ₹. 1350 crores in FY 2019 to ₹. 2485 in FY 2020.

In the last six months due to the Covid-19 pandemic, online food ordering has increased multifold. Zomato being the leader in the food delivery business has been benefited from the pandemic.

The earning for the Q3 has not yet published, but the online traffic and data says that the company has managed to get the pre-covid sales in Q3.

Zomato Company Details

“From swanky upscale restaurants to the coziest hidden gems serving the most incredible food, Zomato covers it all. Explore menus, and millions of restaurant photos and reviews from users just like you, to find your next great meal.”

– Zomato

Before we move ahead and check IPO details, let’s have a look at the company’s details.

Zomato was launched in the year 2008 in Delhi with a vision of enabling digital access to the restaurant’s menus. They started with collecting menus from the restaurants, scan them, and put them online. Today the company present in 24 countries, 10000+ cities globally, and has more than 5000 team members.

The current valuation makes Zomato the most-valued food tech unicorn in the Indian startup ecosystem, surpassing competitor Swiggy, which is valued at $3.6 billion.

In the month of December 2020, the company had completed its primary funding round by clocking $500 million. Zomato is currently valued at $5.5 billion. With this new funding, the company will have $1 billion of cash ahead of its IPO launch.

Goldman Sachs, Morgan Stanley, Credit Suisse, and Kotak Mahindra Bank have been appointed by the company to run its IPO process.

RevenueYear
FY2018$68m
FY2019$206m
CostYear
FY2018$80m
FY2019$500m
YearRevenueEBIDTA
FY2018$192m$277m
FY2019$394m$293m
Q1FY21$41m$12m

The revenue in FY20 grew by 105% as compared to FY19 while the costs grew by only 47% in the corresponding period. Moving our business towards profitability was a core focus for us in FY20 and we made significant progress along that journey.

Losses booked in FY 2019 is $294m is mainly due to the food delivery business in India.

The food delivery business in India is totally different, where most of the first-time users of online food delivery had never used even a phone call for food delivery in the past. There are people who had given a whole party order online worth ₹. 16k to Zomato.

Have a look at some of the facts below to understand the Indian online food delivery business.


Zomato Gold has partnered with 10000+ restaurants across the globe to offer 1+1 food or 2+2 beverages. Zomato Gold will continue to be a program that will provide benefits to its users.

As on 31 March 2019, we have over 1m active subscribers of Zomato Gold globally compared to 170k active users as of 31 March 2018.

The unit economics of the food delivery business has improved consistently over the last 18 months. In Q1 FY20, we used to make a contribution margin of –₹47 per order; in Q1 FY21, we made a contribution margin of +₹27 per order.

Zomato IPO Details

Overview

Zomato is a company that offers online food ordering, providing in-depth information about the restaurants. It is also used for table reservations and a point of sale system.

Company Type : Private

Founded: 2008

HQ: Gurugram,IN

Website: zomato.com

Employee Ratings:

Rating: 3.5 out of 5.

Overall Culture: A+

Zomato is planning for IPO in the 1st half of the year 2021. I will update this space as and when further details pertaining to the IPO is available.

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Vishal Jhaveri is an avid finance blogger with vast experience in various financial markets like Stocks, Mutual Funds, Insurance, and Personal Finance. He believes that personal finance is a subject we aren’t taught in our schools. Earning is important to have a good sustainable life for yourself and your family. but you must acquire financial knowledge to create real wealth. Disclosure: All content provided on this website is for informational and educational purposes only and is not meant to represent trade or investment recommendations.

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