Food Delivery Company Zomato Up 65% In Key Debut In India

Shares of Zomato, a Gurgaon-based food delivery company and the first of India’s consumer tech startups to go public, closed up 64.7% on their start-up day. in Mumbai, providing a key insight into investors’ appetite for the world’s second-largest internet. the market’s burgeoning startup ecosystem.

Zomato shares traded all day above the issue price of 76 Indian rupees ($ 1) and rose to 138.9 Indian rupees ($ 1.87). The 12-year-old firm ended the first day of trading on the BSE in Mumbai at 125.2 Indian rupees ($ 1.68), securing a market capitalization of $ 13.2 billion, up from a valuation of roughly $ 5 billion that it had reached in the private markets during the startup’s fundraiser earlier this year. year.

The startup $ 1.3 billion initial public offering subscribed 40 times last week.

Zomato’s milestone on Friday has been equally significant for the rest of the industry, as startup founders and investors closely watched the performance. India’s Twitter timeline on Friday was flooded with well wishes and celebratory messages from industry colleagues.

Ashish Dave, head of Mirae Asset India, a Zomato sponsor, said Zomato’s listing and performance today have provided the missing piece of liquidity in the Indian startup ecosystem.

“This validates that we can generate large IPOs, which then makes our startups more attractive to global LPs. It also gives Indian investors the opportunity to participate in India’s tech journey rather than watch it from the sidelines, “he told TechCrunch, adding that retail investors of this generation will finally find a way to get in on the action with the brands they recognize and have grown up with.

Zomato CEO Deepinder Goyal was quick to reciprocate. In a blog post, Goyal wrote: “Today is a great day for us. A new zero day. But we couldn’t have gotten here without the incredible efforts of the entire Indian internet ecosystem. Jio’s prolific growth has prepared us all for an unprecedented scale. Flipkart, Amazon, Ola, Uber, Paytm, over the years, have also collectively established the railways that enable companies like ours to build the India of the future. “

“They say it takes a village to raise a child, and we are no exception. Hundreds of people have selflessly contributed to making Zomato what it is today. “

Indian tech startups have raised a record amount of capital this year as some high-profile investors have doubled down in the South Asian market. Swiggy, Zomato’s main rival in India, said earlier this week that it had raised $ 1.25 billion from Vision Fund 2 and SoftBank’s Prosus, among others, with a valuation of $ 5.5 billion.

A handful of other companies are also preparing to go public in a few months. Financial services startups Paytm and MobiKwik submitted for their initial public offerings earlier this month. Online insurance aggregator Policybazaar is expected to submit its documentation in a few weeks.

“I don’t know if we will succeed or fail; surely, as always, we will do our best. But I hope that the fact that we are here inspires millions of Indians to dream bigger than ever and to build something much more incredible than we can dream of, ”wrote Goyal.

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