Zomato is getting ready to go public. In an e mail to workers that has been seen by enterprise each day Mint, Zomato founder and CEO Deepinder Goyal stated that the restaurant aggregator and meals supply app was aiming to file and float an IPO (preliminary public providing) by mid-2021. This comes within the wake of Zomato elevating $102.5 million (roughly Rs. 750 crores) from New York-headquartered hedge fund Tiger Global Management that drives Zomato’s valuation to $3.Four billion (about Rs. 25,000 crores).
“We have raised a lot of money, and today, our cash in the bank (~$250 million) is more than ever in our history,” Goyal wrote in an e mail to workers, Mint stories. “Tiger Global, Temasek, Baillie Gifford, and Ant Financial have already participated in our current round, and there are more big names joining the round — we estimate that our current round will end up with us at $600 million in the bank very soon.”
“The best part is that our burn rate is very low, and our market share is accelerating in all regions. […] We have no immediate plans on how to spend this money. We are treating this cash as a ‘war-chest’ for future [mergers and acquisitions], and fighting off any mischief or price wars from our competition in various areas of our business.”
Zomato introduced its late stage Series J funding spherical — the “current round” that Goyal refers to — earlier this 12 months. It has since raised $5 million (roughly Rs. 37 crores) from Edinburgh-based Pacific Horizon Investment Trust, when Zomato was valued at $3.25 billion (roughly Rs. 23,900 crores). Zomato added to that in August with Singapore-based Temasek-owned MacRitchie Investments contributing $62 million (roughly Rs. 455 crores).
The infusion of $102.5 million from Tiger Global makes it the most important fund increase for Zomato in 2020. Zomato had actually raised $150 million (about Rs. 1,100 crores) at the beginning of the 12 months from Ant Group — affiliated with Alibaba — however it confronted hassle in getting all of that funding after the Indian authorities imposed new FDI laws on international locations that share a land border with India.
Tiger Global’s funding provides it a 3.01 p.c stake in Zomato. Goyal stays the most important particular person stakeholder in Zomato with a 7.7 p.c stake.
Zomato’s new $3.Four billion valuation brings it nearer to its largest rival, Swiggy, final valued at $3.6 billion (about Rs. 26,400 crores).
But even because it’s introduced in more money and inflated itself, Zomato has additionally laid off employees and halved salaries for the rest, amidst the continued coronavirus pandemic.