The Zomato Delivery boy continues to adjust food orders for Delivery bikes during the Covid-19 (coronavirus) pandemic in New Delhi, India, on November 8, 2020.
Nasir Kachroo | NurPhoto | Getty Images
Indian internet company Information edge According to senior executives, there are no plans to sell all of Zomato’s shares when a food delivery startup goes public.
April Zomato Apply for initial public offering of up to Rs 82.5 billion ($ 1.1 billion), the company will issue up to Rs. 75 billion worth of new shares.The company makes profits organic and Inorganic growth Initiatives that may include mergers and acquisitions.
InfoEdge, the largest shareholder of the startup Sell shares worth up to Rs 7.5 billion ($ 101 million), The company said in its April filing with the stock exchange.
“We continue to invest in Zomato and do not intend to sell all of our shares,” InfoEdge CFO and Executive Director Chintan Thakkar told CNBC.Street sign asia” on Tuesday.
Info Edge was the first institutional investor to support Zomato and currently holds an approximately 18% stake in startups. Other shareholders include ride-hailing service giant Uber. Alibaba Affiliate Ant Group and Singapore’s national investor Temasek.
“We’ve announced that we can go up to $ 100 million,” he said, citing the amount of Zomato shares that InfoEdge can sell. “There is still the option of not paying $ 100 million.”
“Most of our holdings are likely to continue in Zomato, so we will continue to invest in them,” Thakkar said.
Thakkar refused to reveal when Zomato’s IPO would occur.
He gained everything from what Info Edge offered to add to the existing funds that are likely to be put into the company’s business to buy or acquire strategic minority shares of potential SMEs. Said that it could be used for.
Info Edge will primarily focus on tech start-ups, or “those that have significant markets and can disrupt existing markets,” he added.
Zomato dominates India, along with rival startup Swiggy $ 4.2 billion food delivery market, This is very competitive, but very fragmented.
In the prospectus, Zomato said it faces fierce competition with chain restaurants that have its own online ordering platform. Other competitors include cloud kitchens and restaurants that operate their own delivery vehicles, and offline orders over the phone.
The company also said the pandemic had a significant impact on last year’s business due to the temporary closure of most restaurants, while many customers did not want to order food from outside. Zomato said revenue from restaurant services was also severely impacted.
Clarification: This story has been updated to reflect InfoEdge’s investment in Zomato, as reflected in the prospectus.
Initial Public Offering Top Shareholder InfoEdge
Source link Initial Public Offering Top Shareholder InfoEdge