Home / Companies / News /  Zomato may file for IPO in first half of 2021

BENGALURU : Online food delivery firm Zomato is likely to go for an initial public offering (IPO) in the first half of 2021 and will look at mergers and acquisitions (M&A) in the future, founder and CEO Deepinder Goyal told employees in an email on Thursday.

“…We have raised a lot of money, and today, our cash in the bank ($250m) is more than ever in our history. 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 $600m in the bank very soon," Goyal said in his email.

Goyal added that while there are no immediate plans on how to spend this money, the cash is being treated “as a ‘war-chest’ for future M&A, and fighting off any mischief or price wars from our competition in various areas of our business."

Mint has reviewed a copy of the email.

Zomato has raised $102 million (or 760 crore) from New-York based investment firm Tiger Global Management, as a part of its ongoing Series J financing, according to regulatory filings.

This investment from Tiger Global comes a week after the Gurugram-based foodtech major closed $62 million from MacRitchie Investments Pte. Ltd., a unit of Singapore’s state investment arm Temasek Holdings.

“A number of ex-Zomans are doing their own startups etc., and wanted to sell their Zomato ESOPs. We have been able to help them in that process. In total, our ex-employees have sold almost $30m ( 225 crore) worth of shares to investors. On an average, people sold their esops at a 4x premium to what those shares were allotted to them back in the day," the email said.

Zomato’s latest fundraise comes at a time when the Gurugram-based firm received $50 out of the total investment commitment of $150 million from China’s Ant Financial in January. Chinese investments in India have gone slow since tension between the two countries escalated in recent months.

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