Info Edge NSE 1.88 %, one of Zomato’s largest and earliest shareholders, will sell shares worth INR 750 crore in an upcoming Initial Public Offering (IPO) of the food delivery company. Details of the sale will be included in the upcoming Zomato’s “Draft Red Herring Prospectus” (DRHP). The DRHP will be filed with Securities and Exchange Board Of India (SEBI).
Zomato had proposed an initial public offering of fresh equity shares and an offer for sale, according to the filing. Info Edge shares gained close at INR 4,944.50 or 1.1% on Tuesday. The Gurugram-based start-up is expected to close its valuation at $6-$8 billion and will emerge as the first large, consumer based, online start-up to tap the public markets apart from a handful of other domestic internet firms eyeing an IPO in the upcoming time. Zomato’s primary rival, Swiggy is finalising a fundraise from Soft Bank, valued at $450 Million, pushing up Swiggy’s valuation to $5 billion.
The shareholding of Info Edge, which supplied an INR 4.7 crore funding to the company in August 2010, and was one of the first to invest, is now worth INR 7,270 crore. The other large shareholder, Ant Financial, with about 20% stake/INR 7,729 crore in Zomato, has not been able to participate in the various funding rounds of the company following a clampdown on Chinese companies and investments in India.
With the lock-down looming large, start-ups in the EdTech, Foodtech, and Healthtech have been gaining traction, with many of these turning into unicorns back-to-back. A lot many venture capitalists are existing the market with a hefty profit, especially during the pandemic period.