NurPhotoNurPhotoNurPhotoNurPhotoNurPhotoNurPhotoNur App for food delivery Zomato, one of India’s biggest internet start-ups, has raised $1.2 billion (£870 million) in an initial public offering (IPO). It garnered $562.3 million from institutional investors, who bought for 35 times the number of shares authorized to them, ahead of the much-anticipated first public offering. Analysts, on the other hand, are concerned about the loss-making company’s high valuation. Zomato is the first of India’s major digital start-ups to go public, financed by Jack Ma’s Ant Group. And more are on the way. India has been producing unicorns, or private companies worth more than $1 billion (74.5 billion rupees), at a rapid pace, and many of them, like Paytm, a mobile payments app, and Nykaa, a retail firm, are poised to list on the stock exchange in the coming months. Zomato’s three-day IPO is projected to value the firm at $9 billion, with shares priced between 72 and 76 rupees per share. The stock is expected to begin trading on July 27. The IPO takes place at a time when both Indian and global markets are at all-time highs. However, India’s economy has been stumbling due to weak growth and rising unemployment, sparking fears of a bubble that might be fueled further by the IPO of overvalued software businesses. Zomato, founded by Deepinder Goyal in 2008, provides food delivery and curates restaurant reviews. It’s present in 525 cities and serves 6.8 million people per month in India, making it a household name. Zomato’s company has been impacted by the pandemic and the occasional lockdowns that have been implemented across India to combat it; income for the financial year ended March 2021 was down 23.4 percent from the previous year. IndiaAsia/n
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