Zomato set to file DRHP for IPO next month

Zomato appears all set to file for an Initial Public Offering or IPO, eyeing a listing in one or more recognised stock exchanges in India, an email sent by the company to its investors said.  

“We currently propose to file our DRHP  in April 2021 and hence believe that you (investors) are not eligible to sell your equity shares in the IPO, however, you are advised to determine your eligibility in this respect on your own,” the email sent by the company’s Chief Financial Officer said.

Entrackr has seen the email. Zomato didn’t immediately respond to a request for comment.

While the company had earlier said that investors wouldn’t sell their stake, the email also says that interested stakeholders can dilute their holding after complying with the Security and Exchange Board of India or SEBI norms.

The timeline for filing the DRHP has come a month after the online foodtech major raised  $250 million led by Kora Management at a valuation of $5.4 billion. Since December, the company has mopped up $850 million across two tranches.

Zomato is reportedly eyeing to raise $750 million to $1 billion at a valuation of $6-8 billion through the public listing.

Zomato is likely to be the first large-scale consumer-facing internet company amongst several to go IPO this year. Lenskart and PolicyBazaar are also set to list on public stock exchanges this year. SaaS poster boy Freshworks and Delhivery also have set a target to go public by 2021.

According to Fintrackr, the company’s losses grew 2.4X to Rs 2,385.6 crore in FY20. The online food delivery major also registered a 98.4% surge in its collections to Rs 2,605 crore in FY20 from Rs 1, 312.6 crore in FY19.