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Zomato IPO | Food delivery giant has raised the bar for tech industry, fuelled dreams, says industry

IPO-bound MobiKwik's founder Upasana Taku said it was a super exciting day as Zomato's listing paved the way for many more startups.

July 23, 2021 / 03:50 PM IST
Zomato's Deepinder Goyal with Sanjeev Bikhchandani and Mohit Bhatnagar on the first day of the IPO launch (Image: Twitter/@sbikh)

Zomato's Deepinder Goyal with Sanjeev Bikhchandani and Mohit Bhatnagar on the first day of the IPO launch (Image: Twitter/@sbikh)

 
 
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As online food delivery firm Zomato created history by listing on stock exchanges on July 23, the industry poured in congratulatory messages on social media platforms.

One of the company's earliest investors, Sanjeev Bikhchandani, thanked Zomato for making him and others look like a "smart investors". On the other hand, Shailendra Singh, the managing director of Sequoia Capital who had come on the company's cap table after Bikhchandani, said that following this development the Indian tech ecosystem won't remain the same as Zomato had raised the bar.

Bikhchandani's firm InfoEdge had invested $1 million back in 2010 as Zomato's first investment. The company was called Foodiebay then.

Read | Zomato IPO: Early investor Sequoia talks about the food delivery giant’s origins and X-factor

Three years later, Sequoia Capital India led Zomato’s $35 million Series A round, making it one of Sequoia Capital India’s largest investments at that point.

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Zomato made a stellar debut on Dalal Street as the stock opened at Rs 116 on the NSE, a 52.63 percent premium to its final offer price of Rs 76. The listing price on the BSE was at Rs 115, up 51.32 percent.

IPO-bound MobiKwik's founder Upasana Taku said it was a super exciting day for Indian Internet paving the way for many more startups. The company also filed its DRHP earlier this month, to raise Rs 1,900 crore via public offering.

Ramesh Kailasam, the chief executive officer of IndiaTech, said every listing was a demonstration of a startup and unicorn growing mature, responsible, create wealth locally, show path for future travelers in this space and building investor confidence.

Ashish Dave, CEO at Mirae Asset Venture Investments, said that the startup ecosystem was sending a virtual hug to the food-tech firm.

Calling it a stellar listing, Ashish Bahety, co-founder of NAV Investment Research, noted that Zomato's market capitalisation had crossed that of InfoEdge, its Angel Investor and the company was now among 50 most valued companies on Indian stock exchanges in terms of market cap.

Read: Zomato listing | Stock crosses Rs 1 lakh-crore mark on listing day. What should investors do now?

Lizzie Chapman, co-founder and CEO of ZestMoney, thanked Zomato's Deepinder Goyal for fueling entrepreneurs' dreams.

Zomato began its journey in 2008, when its co-founders Deepinder Goyal and Pankaj Chaddah, both graduates of IIT-Delhi, became colleagues and friends at Bain & Company. They decided to make it easier to order lunch at work by scanning and creating an online directory of restaurant menus. When more colleagues started using their directory to order food at work, they realised that this was more than a side project. They quit Bain in November 2009 and focused on their venture full-time.
Priyanka Sahay
first published: Jul 23, 2021 03:36 pm

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