Zomato
Mainboard₹9,375 Cr issue
+51.32%
Listing gain over issue price
Issue size
₹9,375 Cr
1 lot at cut-off
₹14,820
Lot size
195shares
Open
14 Jul 2021
Close
16 Jul 2021
Allotment
22 Jul 2021
Listing
23 Jul 2021
Listing performance
Issue price
₹76
Listed at
₹115
Listing-day close
₹125.85
Latest price
₹317.40
Close on 23 Oct 2026
Listing gain
+51.32%
Return since issue
+317.63%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 14 Jul 2021 – 16 Jul 2021
- Listing date
- 23 Jul 2021
- Face value
- ₹1 per share
- Issue price
- ₹76 per share
- Lot size
- 195 shares
- Total issue size
- ₹9,375 Cr
- Market cap at offer price
- ₹59,623 Cr
- ISIN
- INE758T01015
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- BOFA Securities India Ltd.
- Registered office
- Ground Floor, 12A, 94 Meghdoot, Nehru Place, New Delhi
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 55,21,73,505 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 195 shares per lot, in multiples, at ₹76
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 195 | ₹14,820 |
| Retail (max) | 13 | 2,535 | ₹1,92,660 |
| S-HNI (min) | 14 | 2,730 | ₹2,07,480 |
| S-HNI (max) | 67 | 13,065 | ₹9,92,940 |
| B-HNI (min) | 68 | 13,260 | ₹10,07,760 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
55,21,73,505
Anchor portion
₹4,197 Cr
at ₹76 per share
Valuation and performance
Valuation at offer price
₹76 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹59,623 Cr |
About Zomato
Zomato Limited, incorporated in 2010, operates a digital platform that serves multiple stakeholder groups in the food services ecosystem. Customers use the platform to search and discover restaurants, read and write reviews, order food, book tables, and make payments. The company generates revenue primarily from food delivery commissions charged to restaurant partners and from advertising placed on the platform. The company also operates Hyperpure, a supply service for restaurant ingredients, and Zomato Pro, a subscription product. Since its incorporation, Zomato has evolved from a single-service provider to a multi-service platform. The company has expanded beyond India into multiple international markets. Zomato's business model leverages network effects: more customers attract restaurant partners, and more restaurant partners attract customers, creating a virtuous cycle. The company has experienced significant growth in recent years, though it has historically operated at a loss.
Company Analysis
from RHPZomato is a technology platform connecting customers, restaurant partners, and delivery partners, operating primarily in food delivery with additional services in dining reservations, ingredient supply, and subscriptions across India and multiple international markets.
Zomato Limited, incorporated in 2010, operates a digital platform that serves multiple stakeholder groups in the food services ecosystem. Customers use the platform to search and discover restaurants, read and write reviews, order food, book tables, and make payments. The company generates revenue primarily from food delivery commissions charged to restaurant partners and from advertising placed on the platform. The company also operates Hyperpure, a supply service for restaurant ingredients, and Zomato Pro, a subscription product. Since its incorporation, Zomato has evolved from a single-service provider to a multi-service platform. The company has expanded beyond India into multiple international markets. Zomato's business model leverages network effects: more customers attract restaurant partners, and more restaurant partners attract customers, creating a virtuous cycle. The company has experienced significant growth in recent years, though it has historically operated at a loss.
Food deliveryDining reservations and restaurant discoveryFood supply (Hyperpure)Subscription servicesDigital platforms
Objects of the Issue
- Funding organic and inorganic growth initiatives ₹67,500 million p.29
- General corporate purposes ₹19,780 million p.29
- Funding organic growth initiatives comprising customer and user acquisition, along with investments in technology and delivery infrastructure At least 40% of Net Proceeds p.47
- Acquisitions and other strategic initiatives to enhance geographical presence, expand service offerings and delivery capabilities Remaining portion of Net Proceeds earmarked for growth initiatives p.47
- Funding organic and inorganic growth initiatives ₹67,500 million p.117
- General corporate purposes ₹19,780 million p.117
Issue Structure
- Total Issue
- ₹93,750 million (1,233,552,631 Equity Shares)
- Fresh Issue
- ₹90,000 million (1,184,210,526 Equity Shares)
- Offer for Sale
- ₹3,750 million (49,342,105 Equity Shares by Info Edge India Limited)
- Price Band
- ₹72 to ₹76 per Equity Share
- Lot Size
- 195 Equity Shares as minimum Bid Lot
- Face Value
- ₹1 per Equity Share
Business Model
Zomato generates the majority of its revenue from food delivery, primarily through commissions charged to restaurant partners for using its platform. Restaurant partners also spend on advertisements on the platform. The company operates Hyperpure, which supplies ingredients to restaurant partners. The company offers Zomato Pro, a subscription product for customers. Revenue from operations grew from ₹13,125.86 million in Fiscal 2019 to ₹19,937.89 million in Fiscal 2021.
Business Segments
Platform facilitating online food ordering and delivery from restaurant partners to customers
Supply of ingredients to restaurant partners
Online table reservation service allowing customers to book tables at restaurants
Subscription product offering benefits to customers
Online food delivery service connecting customers with restaurants
Restaurant discovery and information service allowing customers to search, discover, read reviews, view photos, book tables and make payments
Farm-to-fork supplies offering for restaurants
Customers search and discover restaurants, order food delivery with median delivery time of 30 minutes. Restaurant partners list offerings and pay commissions. Delivery partners fulfill orders.
Customers search restaurants, read and write reviews, view and upload photos, book tables, and make payments while dining-out. Restaurant partners pay for advertisement sales.
Farm-to-fork supplies offering that sources and supplies fresh ingredients, groceries, dairy, poultry, meats, seafood, bakery items, beverages and packaging to restaurant partners.
Paid-membership loyalty program offering flat percentage discounts at select restaurant partners for both food delivery and dining-out.
Enables customers to order food online from restaurants and receive delivery at their doorstep through a hyperlocal network of delivery partners
Provides online table reservation services at restaurants and dining experience discovery through curated restaurant listings with reviews, ratings, and photos
B2B supplies business providing fresh, high quality ingredients and supplies to restaurants including vegetables, fruits, poultry, groceries, meats, seafood, dairy, beverages, and eco-friendly packaging materials
Exclusive membership program offering discounts on food delivery and dining-out experiences at partner restaurants
Online food delivery, restaurant information, and platform services in India
Online food delivery and platform services in UAE
Online food delivery and platform services in other international markets
Provides food delivery services through a digital platform connecting customers with restaurants and delivery merchants
Provides restaurant information, discovery, and advertising platform services to restaurants and merchants
Sale of traded goods through the platform
Food delivery and dining-out marketplace services with largest concentration of operations
Food delivery and dining-out marketplace services
Food delivery and dining-out marketplace services in Australia, New Zealand, Philippines, Indonesia, Malaysia, USA, Lebanon, Turkey, Czech, Slovakia, Poland and other countries
SWOT Analysis
Strengths
- • Multi-service platform with diversified revenue streams(p.40)
- • Strong revenue growth trajectory(p.40)
- • Significant market opportunity in India's food services sector(p.30)
- • Network effects driving business model(p.42)
- • Brand recognition and customer acquisition through organic channels(p.42)
- • Successful track record of expansion into new service categories(p.44)
- • Benefits from strategic acquisitions that enhanced technological capabilities(p.49)
- • Strong customer base and market presence(p.44)
- • Category leader in food delivery with strong market share gains(p.136)
- • Largest delivery partner network in India(p.136)
- • Strong user engagement with substantial monthly active users and high order frequency(p.136)
- • Most downloaded food and drinks application in India(p.135)
- • Largest online table reservations and food-focused restaurant discovery platform(p.137)
- • Extensive geographic presence across India(p.135)
- • Rapid recovery from COVID-19 impact in food delivery business(p.137)
- • Strong network effects through unique content and transaction flywheels combining Yelp, DoorDash, and OpenTable capabilities(p.141)
- • Large, efficient hyperlocal delivery network with significant scale advantage(p.143)
- • Rapid improvement in unit economics with positive contribution margin achieved(p.145)
- • Strong organic customer acquisition with 68% of new customers acquired without paid advertising(p.141)
- • Strong consumer brand recognized across India with high customer retention(p.144)
- • Technology and product-first approach leveraging AI and machine learning for platform optimization(p.143)
- • Significantly reduced marketing spend intensity while maintaining growth momentum(p.144)
- • Extensive restaurant partnership base with 389,932 active listings providing content moat(p.141)
- • Diversified revenue streams from multiple platform services and transactions(p.237)
- • Established brand and significant market presence with consumer contracts and relationships(p.236)
- • Strong technology platform infrastructure and asset base(p.246)
- • Acquisition of Uber Eats India assets strengthens market position(p.275)
- • Diversified business model with food delivery, cloud kitchens, and fitness services(p.273)
- • Strong capital position with significant liquid investments(p.288)
- • Established shareholder base with major institutional investors(p.261)
- • Diversified online classified services across multiple verticals(p.336)
- • Strong financial performance with significant profitability on consolidated basis(p.336)
- • Substantial strategic investments held by group company(p.336)
Weaknesses
- • Persistent history of net losses(p.40)
- • High cash burn from acquisition and expansion activities(p.40)
- • Dependency on restaurant partner guarantees creating contingent liabilities(p.43)
- • Broad discretion over use of Net Proceeds without external appraisal(p.41)
- • Vulnerability to reputational damage from partner conduct(p.44)
- • History of negative cash flows from operations(p.48)
- • Dependence on third-party service providers for critical operations(p.48)
- • Reliance on senior management and key personnel(p.51)
- • High employee attrition in the past(p.51)
- • Impairment of goodwill on acquisitions(p.49)
- • Significant pending litigations and contingent liabilities(p.52)
- • Corporate records with discrepancies and untraceable documents(p.60)
- • Significant operating losses and negative profitability metrics(p.135)
- • Negative return on net worth reflecting poor profitability(p.125)
- • Severe impact of COVID-19 on dining-out services with slower recovery(p.137)
- • Significant decline in dining-out engagement metrics post-COVID(p.137)
- • Decline in restaurant partners using advertising sales product(p.137)
- • Negative earnings per share indicating continued losses(p.124)
- • Dependence on limited geographic concentration of revenues within India(p.138)
- • High dependence on restaurant partners with limited contractual exclusivity protecting the platform(p.153)
- • High capital intensity requirements for delivery infrastructure and incentive programs(p.144)
- • Dining-out business still recovering with customer reluctance to dine out(p.138)
- • Consistent operating losses over three consecutive years(p.224)
- • Significant accumulated losses reducing retained earnings(p.229)
- • Heavy operating expenses exceeding revenues(p.224)
- • High employee benefits expense relative to revenue(p.224)
- • Substantial goodwill and intangible assets subject to impairment risk(p.223)
- • Significant cumulative losses eroding equity base(p.264)
- • Recurring annual losses in core operations(p.270)
- • Impairment of acquired assets indicating unsuccessful acquisitions(p.248)
- • High proportion of intangible assets and goodwill on balance sheet(p.273)
- • Substantial operating expenses relative to revenue(p.269)
- • Significant unresolved tax disputes across multiple years(p.337)
- • Regulatory penalties imposed by stock exchanges(p.337)
- • Subsidiary companies generating substantial losses(p.339)
Opportunities
- • Expansion into underpenetrated markets and new geographies(p.40)
- • Growth in smartphone and internet adoption driving digital adoption(p.30)
- • Large addressable market for food services with low current penetration(p.30)
- • Recovery and expansion post-COVID-19 pandemic(p.40)
- • Development and scaling of complementary services(p.40)
- • Expanding service offerings and geographic presence through inorganic growth(p.47)
- • Growth in food delivery market which is still in early stages(p.57)
- • Continued investment in technology and platform enhancements(p.44)
- • Large and growing food delivery market in India with expanding consumer base(p.117)
- • Expansion of technology infrastructure to serve new business lines and products(p.119)
- • Growth through strategic acquisitions and inorganic opportunities(p.120)
- • Expansion of Hyperpure B2B supplies business to new cities(p.137)
- • Deepening restaurant partner engagement through expanded service offerings(p.137)
- • Recovery and expansion of dining-out services as pandemic impacts ease(p.137)
- • Large underpenetrated total addressable market of $110 billion by 2025 with room for growth(p.159)
- • Rapid digitization trends with internet and smartphone penetration expected to reach 68% and 56% respectively by 2025(p.157)
- • Expanding into new product categories like grocery delivery on pilot basis(p.146)
- • Opportunity to accelerate digital adoption post-COVID with sustained consumer behavior changes(p.138)
- • Growing urbanization with 37-38% of India's population expected to be urban by 2025(p.157)
- • Rising consumption driven by large working-age population and increasing disposable income(p.156)
- • Potential to grow membership base (Zomato Pro) as primary monetization avenue(p.146)
- • Expansion of subscription and recurring revenue models(p.238)
- • Growth in advertisement revenue from platform reach(p.237)
- • Expansion of delivery and logistics facilitation services(p.238)
- • Growth through acquisitions and business combinations(p.246)
- • Expansion through strategic acquisitions in complementary services(p.273)
- • Growth in food delivery and cloud kitchen services(p.267)
- • International expansion potential with existing overseas operations(p.286)
- • Platform services income generation(p.267)
- • Expansion through strategic acquisitions and amalgamation(p.337)
- • Growth through multiple subsidiary and joint venture platforms(p.341)
Threats
- • Intense competitive pressure from well-capitalized rivals(p.44)
- • Recurring impact of COVID-19 pandemic on business operations(p.41)
- • Food safety and health-related risks in food delivery operations(p.43)
- • Regulatory uncertainty and changing compliance requirements(p.28)
- • Fragmented competitive landscape with low barriers to entry(p.44)
- • Platform dependency risks and technological disruption(p.27)
- • Intense competition with low barriers to entry(p.44)
- • Competitive pricing pressures affecting profitability(p.44)
- • Technology and regulatory changes could render existing systems obsolete(p.44)
- • Risk of system failures and service interruptions(p.45)
- • Cybersecurity breaches and data protection risks(p.46)
- • Evolving privacy and data protection regulations(p.47)
- • Regulatory uncertainties regarding labor classification of delivery partners(p.63)
- • Macroeconomic factors affecting consumer discretionary spending(p.63)
- • Natural disasters and pandemics impacting operations(p.61)
- • Regulatory changes and compliance requirements(p.62)
- • FDI policy restrictions and regulatory interpretation risks(p.66)
- • COVID-19 pandemic causing significant business disruption and uncertainty(p.135)
- • Continued impact of second wave of COVID-19 on dining-out services(p.137)
- • Significant decline in orders during pandemic period(p.135)
- • Competitive pressure in food delivery market affecting economics(p.137)
- • Dependence on food delivery revenue as primary income source(p.136)
- • Uncertainty in future inorganic growth and acquisition funding requirements(p.120)
- • Highly competitive food delivery market with multiple established players including Swiggy and cloud kitchens(p.159)
- • COVID-19 pandemic impact remains uncertain with potential for future waves and consumer caution(p.138)
- • Evolving regulatory framework including new labor codes for gig workers and platform workers(p.165)
- • Food Services market contracted to $32-35 billion from $65 billion due to COVID-19(p.159)
- • Potential for gig worker benefits costs to increase through regulatory mandates on platforms(p.165)
- • Significant operating cash burn impacting liquidity sustainability(p.225)
- • Dependence on continued external funding and capital raises(p.225)
- • Impact of COVID-19 pandemic on operations and financial performance(p.217)
- • Foreign currency exchange exposure from international operations(p.234)
- • Competitive pressure and market cyclicality in online food delivery(p.237)
- • High competitive intensity in food delivery market affecting margins(p.269)
- • Dependence on customer acquisition through incentives(p.269)
- • Significant decline in revenue from prior years(p.267)
- • Outsourced support cost volatility and operational complexity(p.269)
- • Non-controlling interest obligations in subsidiaries(p.273)
- • Service tax and customs duty disputes on historical transactions(p.337)
- • Ongoing regulatory and legal proceedings affecting profitability(p.337)
- • Consolidation challenges and integration risks from joint ventures and associates(p.340)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Zomato Limited | Professionally managed company with no identifiable promoter | — | — |
| Info Edge | Selling Shareholder | 18.52% | 15.11% |
| Info Edge (India) Limited | Selling Shareholder | 18.68% | — |
| Deepinder Goyal | Promoter | 5.55% | — |
| Deepinder Goyal | Founder/Promoter | — | — |
| Deepinder Goyal | Founder/Promoter | 5.55% | 4.71% |
| Info Edge (India) Limited | Promoter/Investor | 46.79% (equity shares) as of 31 March 2021 | — |
| Deepinder Goyal | Founder/Director | 15.69% (equity shares) as of 31 March 2021 | — |
| Foodiebay Employees ESOP Trust | Promoter Group | 11.88% (equity shares) as of 31 March 2021 | — |
| SCI Growth Investment II | Investor | 52.89% (Class E CCPS) as of 31 March 2021 | — |
| Deepinder Goyal | Founder | — | — |
| Info Edge (India) Limited | Selling Shareholder | — | — |
Leadership
Deepinder Goyal · Founder, Managing Director and Chief Executive Officer
Akshant Goyal · Chief Financial Officer
Sandhya Sethia · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Zomato IPO FAQs
What is the lot size of Zomato IPO?
The minimum lot size of Zomato IPO is 195 shares. One lot costs ₹14,820 at the cut-off price.
When does Zomato IPO open and close?
Zomato IPO opened for subscription on 14 Jul 2021 and closed on 16 Jul 2021.
What is the listing date of Zomato IPO?
Zomato IPO listed on 23 Jul 2021.