Food delivery firm Zomato, flush with new investor capital and clawing back from the pandemic, plans to go public next year, CEO Deepinder Goyal told employees.
Zomato, currently valued at $3.5 billion, plans to file for an initial public offering (IPO) in the first half of next year, although whether it will list in India or the US is unclear.
Moneycontrol first reported on August 9 that Zomato is preparing for an IPO next year, and hence looking to reduce its cash burn and get closer to profits.
"Our finance/legal teams are working hard to take us to IPO sometime in the first half of next year. The value of our business is going up dramatically, all thanks to the hard work and commitment of our team. We hope to create a lot of value for our current employees who have Esops sometime in the next year,” CEO Goyal told employees in an email.
If the IPO does happen, it will be the first among India’s modern consumer internet startups, and India’s first internet IPO since companies such as Infoedge (which owns Naukri.com) and MakeMyTrip. Infoedge is also a shareholder in Zomato.
At present, a company incorporated in India can list on a foreign stock exchange only after it is listed in India. MakeMyTrip, which is listed on Nasdaq, had to incorporate itself in Mauritius to facilitate overseas listing without going public in India.
Although most large Indian startups are far from an IPO, some such as Freshworks, Policybazaar and Nykaa are expected to go public in the next few years.
Mint reported on September 8 that the Ministry of Corporate Affairs is close to releasing a draft report that will pave the way for Indian companies to list their shares in overseas markets without listing in India first.