PremiumBENGALURU: Foodtech platform Zomato Ltd on Wednesday filed its draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI), proposing an initial public offering (IPO) of ₹8,250 crore.
In line with this the company will be issuing fresh equity shares worth ₹7,500 crore, along with the company’s early backer Info Edge India Ltd selling its stake worth ₹750 crore in Zomato's upcoming public offering.
As per Zomato’s latest shareholding pattern, Info Edge is the largest shareholder and controls 18.5% in the company, followed by Uber B.V. holding 9.13%, with Alipay Singapore Holding Pte. Ltd and Antfin Singapore Holding Pte. Ltd holding close to 8.33% and 8.22% in the company respectively.
The company will also be taking a pre-IPO placement which may be undertaken in consultation with the managers for an aggregate amount not exceeding ₹1,500 crore, at a final price decided by the company.
The company plans to use ₹5,625 crore worth of the net proceeds (including pre-IPO funding) towards funding organic and inorganic growth initiatives.
“We expect our costs to increase over time and our losses will continue given significant investments expected towards growing our business. We have expended and expect to continue to expend substantial financial and other resources on, among others, advertising and sales promotion costs to attract customers and restaurant partners to our platform, developing our platform, including expanding our platform’s offerings, developing or acquiring new platform features and services, expanding into new markets in India, and expanding our delivery partner network," said Zomato in its DRHP.
As per the document, Zomato claimed that its revenue from operations has grown from ₹466 crore in fiscal year 2017-2018 to ₹2,604 crore in fiscal 2019- 2020.
Further, the company claimed that its revenue from operations for the nine months ended 31 December 31 2020 was ₹1,301 crore.
"In particular, as lockdowns in response to the covid-19 pandemic eased in India towards the end of May 2020, our food delivery business started recovering and in the third quarter of 2020-2021 fiscal we recorded the highest goods order value achieved by us in any quarter till December 2020," said Zomato.
The company also claimed that its losses had mounted from ₹106 crore in 2017-18 fiscal to ₹2,385 crore in fiscal year 2019-20. Its losses in the last nine months ending 31 December 2020, stood at ₹682 crore.
As per the offer document, Zomato had close to 350,174 active restaurant listings across 526 cities in India, as of 31 December 31, 2020.
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