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What is Zomato’s valuation? $2.5 Billion, Morgan Stanley says


Last year proved to be pivotal for foodtech unicorn Zomato. The Gurugram-based company had launched products such as Zomato Gold and also turned profitable in all markets it operates.

This year also seems to have started on a good note for the company as Morgan Stanley’s research unit has spiked Zomato’s valuation by staggering 3X from its valuation during last funding round.

Morgan Stanley has estimated Zomato’s valuation at $2.5 billion in a report, mentions an Economic Times report. The valuation markup has been calculated through consideration of its publicly traded shareholder Info Edge.

Morgan Stanley and Zomato’s data collectively estimate $65 million revenue for later in the fiscal year 2018. It also pegs 34 million total orders for the company during the same period.

Importantly, Zomato’s Indian classifieds business expects to contribute $22 million revenue in the current fiscal.

The massive valuation markup also comes at a time when Deepinder Goyal-led company is in talks to raise up to $200 million from Alibaba and its payments affiliate Ant Financial at a valuation of $1.1 billion.

Last year, the company witnessed valuation markups twice from global investment banking firm Jefferies and Nomura.

In the past, Zomato and e-commerce major Flipkart had faced valuation markdowns. However, they were unfazed by markdowns as according to them it didn’t consider key business metrics. Despite multiple markdowns, Flipkart had managed to raise $2.4 billion from Softbank Vision Fund at an estimated valuation of $11.6 billion.

Zomato key developments in 2017

The company achieved profitability across the 24 countries where it operates in September. To take on rival Swiggy, it started a commission-free campaign for about 70 per cent of its restaurant partners.

Zomato also launched subscription-based memberships such as Zomato Treats and Gold. While priced at Rs 249 – Treat lets subscribers avail a free dessert with every meal they order across 16 cities in India, Gold membership is an exclusive dine out and social drinking membership program.

The company had raked-in over 40,000 subscribers in a couple of days of Gold membership launch. Last year, it acquired hyperlocal logistics startup Runnr in an all-stock deal and also invested in Hyderabad-based home-cooked meals delivery startup TinMen.

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