Zomato IPO Analysis
Zomato was launched in 2010. Its technology platform connects customers, restaurant partners and delivery partners, serving their multiple needs.
Customers use Zomato’s platform to search and discover restaurants, read and write customer-generated reviews and view and upload photos, order food delivery, book a table and make payments while dining out at restaurants (B2C). On the other hand, Zomato also provides restaurant partners with industry-specific marketing tools which enable them to engage and acquire customers to grow their business while also providing a reliable and efficient last-mile delivery service (B2B).
Promoters of the company have 5.5% of the shareholding. For FY 21, the company’s PAT is negative since the company could not meet up the expenses. The company’s IPO opening date will be 14th July 2021 till 16th July 2021 with the price of Rs 72 to Rs 76 per equity share. The expected issue size of the IPO is Rs. 9375 Cr.
Zomato IPO will be the first the Indian unicorn start-up getting listed. Thought the financials of the company are weak but considering the domain & industry it belongs, it will be fruitful for long term purposes.
