Zomato, which will be offering its IPO on July 14, will enter the grocery business, said the company. It has confirmed $100 million investment in SoftBank-backed online grocery firm Grofers.
The food app has fixed the price band for its IPO at Rs 72-76 per equity share and it will be open for subscription on July 14 and close on July 16. The offer contains issuance of Rs 9,000 crore, and an offer for sale of Rs 375 crore by existing selling shareholder Info Edge.
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Zomato and Grofers’ deal was finalised amid the COVID-19 pandemic, when more consumers have moved to the online mode of buying groceries. However, this is not it attempted to enter the grocery business. Last year, when the food ordering was impacted due to the pandemic, Zomato tried to experiment with groceries.
Zomato has also recently entered the nutraceutical business with the launch of private label health supplements.
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%u201CIn Financial Year 2020, the food app generated marketplace gross order value of about $1.54 billion, around 2.3 per cent of the market and we believe that the company is in the early phases of broad market adoption,%u201D said research analyst Shobit Singhal in the note.
A foreign brokerage and research firm Jefferies had said that Zomato IPO will mark the first meaningful Internet listing in India, adding food delivery was the bedrock with over 80% contribution.
Zomato, India-based restaurant aggregator and food delivery app, was founded by Pankaj Chaddah and Deepinder Goyal in 2008. It helps users find menus and reviews of restaurants. It also allows consumers to order food from partner restaurants in selected cities.
