Zomato Planning An IPO In First Half Of 2021, CEO Deepinder Goyal Says
Zomato Media Pvt. Ltd. is planning an initial public offering in the first half of 2021, the co-founder and chief executive officer of the foodtech startup said on Thursday.
"Our finance/legal teams are working hard to take us to IPO sometime in the first half of next year,” Deepinder Goyal told employees in an email, a copy of which was seen by the Press Trust of India. “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.”
The Zomato IPO is around the corner and waiting a little longer will result in more value creation for all, he added.
"A number of ex-Zomans are doing their own startups, etc...and wanted to sell their Zomato ESOPs. We have been able to help them in that process. In total, our ex-employees have sold almost $30 million (about Rs 225 crore) worth of shares to investors," Goyal said.
On the company’s fundraising, he said, “We have raised a lot of money, and today, our cash in the bank (about $250 million) is more than ever in our history.” Tiger Global, , Temasek Holdings, Baillie Gifford and Ant Financial have already participated in the company's current funding round, and there are more big names coming in, he said.
“We estimate that our current round will end up with us at $600 million (about Rs 4,400 crore) in the bank very soon,” Goyal said.
The best part is that Zomato’s burn rate is very low, he said, and its market share is accelerating in all regions. The company is doing some of its best work without burning a hole in its pocket, and it should continue to do so, Goyal said.
"...we have no immediate plans on how to spend this money. We are treating this cash as a 'war-chest' for future M&A, and fighting off any mischief or price wars from our competition in various areas of our business," he added.