New Delhi: After the food delivery startup Zomato backed by Ant Group, filed for an initial public offering in April, the company is now eyeing a listing valuation of $8.7 billion dollars on the back of attraction from the global tech specialist and EM funds.
The company, yet to get the Sebi approval for the IPO, is aiming to launch the issue by mid-July. As per the sources of Moneycontrol, the expected valuation for Zomato is at a premium to the Hong Kong-listed delivery platform Meituan.
As per the report, Zomato has hiked its primary fund raise through the IPO by 20 per cent to $1.2 billion while the secondary portion or Offer for sale (OFS) has been reduced by 50 per cent to $50 million. OFS is likely by Infoedge which owns around 18 per cent stake in Zomato.
In April, the company was aiming $9 billion valuations through the issue. After the last fund raise, Zomato was valued at around $5.4 billion.
Ahead of its much-awaited IPO, the company had also amended its memorandum of association earlier in April to become a public limited company, renaming itself Zomato Ltd.
Meanwhile, Zomato has sought approval from the Competition Commission of India to acquire a 9.3 percent stake in Grofers, according to Economic Times. As per the report, the $100 million investment by Zomato is likely to turn Grofers into the newest unicorn. Gurugram-based grocery delivery startup Grofers had raised $120 million from IPO-bound food delivery platform Zomato, as per the Moneycontrol report.