Zomato transforms into public company from private limited

Zomato tackles up to get enumerated on the exchanges in the coming months; the Company commenced a corporate reform to adapt itself from a private limited company to a public company.

The Company states, “Zomato was originally incorporated as a private limited company on January 18, 2010, and the company wishes to convert itself into a public company. The members were hereby informed that the company is considering the filing of a draft red herring prospectus with the Securities and Exchange Board of India (Sebi) and relevant stock exchange(s) and listing of the equity shares on one or more of the stock exchanges. To undertake the same, the company is required to be converted into a public limited company.”

The name of the company has been changed to Zomato Limited from Zomato Private Limited. The Gurgaon-based food-tech firm plans to launch an IPO in the first half of this year.

Founder and CEO Deepinder Goyal states. “Last year in an internal mail to employees. Media reports peg the size of the IPO at anywhere between $650 million to $1 billion. The company has been on a fundraising spree, garnering about $910 million from a clutch of investors through 2020 and early 2021. The firm’s valuation currently stands at $5.4 billion. The food delivery business grew manifold amid the pandemic as home-bound consumers took to online ordering of food. Zomato claims to have clocked nearly 60 percent higher GMV (gross merchandise value) on New Year’s Eve 2020 over last year. To put this in perspective, it translates into a GMV of 75 crore in a single day.”

Zomato is midst of a batch of start-ups that are looking to go public in the coming months. Companies counting PolicyBazaar, Grofers and Delhivery are already working on that front. Byju Raveendran-led ed-tech firm Byju’s is also aiming to go for an IPO in the next 18-24 months.