Zomato files for IPO, eyes Rs 8,250 crore – News 24-7 Live News 24-7 Live
Zomato files for IPO, eyes Rs 8,250 crore

Zomato files for IPO, eyes Rs 8,250 crore

The food tech start-up that mopped up $910 million from investors through 2020 and early 2021 is believed to be eyeing a much bigger valuation than the current claimed valuation of $5.4 billion. Zomato and Swiggy are today the leaders, in what RedSeer estimates will be a $110-billion market by 2025.

Zomato’s revenue from operations grew 98.44% to Rs 2,604.73 crore in FY20 while losses increased by as much as 136.14% to Rs 2,385.6 crore. In the nine months to December 2020, the company’s operational revenues stood at Rs 1,301.34 crore while losses totalled `682.19 crore. The company sees food delivery as a 30% Ebitda margin business in steady state and dining out and B2B at 50% and 5-10%, respectively.

A recent Goldman Sachs report said Zomato claimed it has a market share of 55% in the food delivery space. Zomato also claimed it had a first-mover advantage in tier-two cities and also a higher share in these markets. While the basket size in these cities is 30% lower, the cost of delivery too is about 50% lower, resulting in lower wages, and thus the unit economics is similar to those in top-tier cities. The start-up’s average order value for food delivery increased to Rs 407.8 in Q3FY21 from Rs 264.6 from Q1FY20.

News Source: financialexpress

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