Exclusive | Zomato Eyes $8.7 billion valuation at listing, IPO launch likely in mid-July

Food delivery giant Zomato is eyeing a listing valuation of $8.7 billion dollars due to huge demand from the global tech specialist funds and EM funds, sources with direct knowledge share with Moneycontrol.

The expected valuation for Zomato is at a premium to the Hong Kong-listed delivery platform Meituan. Zomato is awaiting SEBI approval for the IPO and is planning to launch by mid-July, sources share.

IPO-bound Zomato invests $120 million in Grofers

Sources suggest Zomato has increased its primary fund raise through the IPO by 20% to $1.2 billion, it has reduced the secondary portion or OFS by 50% to $50 million. Offer for sale or OFS is likely by Infoedge which owns around 18% stake in Zomato.

Moneycontrol earlier reported that Zomato IPO could see highest-ever oversubscription.

Zomato & Infoedge did not offer any comment on Moneycontrol’s query.

Moneycontrol had earlier reported in April that Zomato was eyeing close to $9 billion valuation via IPO. Last fund raise valued Zomato at around $5.4 billion.

The food delivery platform Zomato recently signed off on its long-held plan to invest in online grocery startup Grofers. Sources had earlier told Moneycontrol that the deal had officially been signed on June 29 2021, as part of which Zomato and existing investor Tiger Global will invest around $120 million in the grocery startup at a valuation of over one billion dollars.

The firm has sought approval of the Competition Commission of India (CCI) to acquire a 9.3 percent stake in online grocery firm Grofers.