EUR 93.06 For Business Accounts Only

Zomato Pre-IPO

Zomato aims to raise US$1.1bn in its upcoming India IPO. This would be the largest listing in India from the technology sector.

Zomato operates a technology platform that provides services for restaurant partners, customers, and delivery partners. During FY20, Zomato recorded 41.5m average MAU and was one of the leading Food Services platforms in India, in terms of value of goods sold, according to RedSeer. As of 31 Dec 20, it had a presence in 526 Indian cities and had 350,174 active restaurant listings.

Its average MAU increased by 3x over FY18-20, while its average monthly transacting users grew by 11.9x. It also increased its restaurant foot print by 4.3x, gross order value by 8.4x and total orders by 13.2x. However, the company hasn’t presented much of a narrative for its past performance in its public filings, although there is a lot more public information available at other sources which helps explain its rapid growth better.

Compared to its other metrics, looking at the headline growth numbers, one would opine that revenue increased by only 5.6x over FY18-20, However, using the information from other sources, it would suggest that food delivery revenue increased by 15.6x over FY18-20.

Although, despite the heady growth, the company continues to record losses.