The IPO parade which continued into 2021 is not a purely domestic affair. Other countries are falling into the unicorn’s liquidity frenzy.
This week, India-based unicorn Zomato filed for an IPO for food delivery. As reported by Biomedarticles, the company intends to “list on the Indian NSE and BSE” exchanges.
Zomato’s IPO is incredibly important. Like our own Manish Singh reported a “successful listing” when the company’s numbers were released [could be] ready to encourage nearly a dozen other Indian unicorn startups to accelerate their public market entry efforts. “So Zomato’s debut is notable not only because its upcoming listing gives us a glimpse into the economy, but also because if the IPO goes well, it could lead to a surge in liquidity in the country.
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Back to Zomato: The company’s IPO filing paints the picture of a fast-growing company derailed from the pandemic. However, the unicorn has rallied rapidly in recent quarters, and its economy is maturing to the point where it can begin to find a path to long-term profitability. This morning let’s examine the numbers and find out why the company is now going public and how investors can check out recent performance.
Zomato was last valued at around $ 5.4 billion in a round in February 2021, in which $ 250 million was invested. The unicorn has raised more than $ 2 billion to date, according to Crunchbase data.
In business terms, Zomato offers more than just grocery delivery. According to the IPO filing, the company’s grocery store will be enhanced with the Eat Out feature that makes in-person dining easier, a commodities store called Hyperpure, and Zomato Pro, a consumer offering that offers grocery discounts on 1.4, adding to millions of subscribers.
So we can’t just compare the company one-to-one with Uber Eats, whose India business Zomato bought back at the time.
What we can track, however, is the company’s overall financial performance through the end of 2020. The Zomato filing does not appear to contain any information about the calendar’s Q1 2021 calendar performance. For reference, this period is the fourth quarter of the company’s fiscal year 2021.
Let’s start from a very high level:
- Fiscal year ended March 31, 2019: total revenues of $ 187.4 million and a loss before special items of $ 296.3 million.
- Fiscal year ended March 31, 2020: total revenues of $ 367.8 million and a loss before special items of $ 303.5 million
- Nine months ended December 31, 2020: total revenues of $ 183.4 million and a loss before special items of $ 47.8 million