time to read 1 minutes

Zomato IPO is a breath of fresh airINTL

Zomato IPO is a breath of fresh air

India’s capital markets are calling all hungry investors to the table with the upcoming IPO of Zomato. The food delivery unicorn startup, which was most recently valued at $5.4b, is planning to raise $1.1b when it hits the Indian stock exchanges NSE and BSE.

Zomato has experienced lots of growth in the past few years with the rise of e-commerce, so it is now looking to capitalize on that and possibly encourage other unicorn startups in the country to tap the public markets.

While Indian startups are incredibly proficient at raising private funding, they have not typically been keen to list. However, past tech public debuts (IndiaMart and Nazara, for instance) proved that there is definitely investor interest, paving the way for others (like Zomato) to follow.

why it matters
As India is experiencing a Covid-19 outbreak at the moment, its markets are taking a hit. If Zomato’s IPO manages to revitalize local investor appetite, it might offer a glimmer of light at the end of the tunnel in terms of future economic prospects.