Zomato plans to file for an IPO in the first half of next year.
Online food delivery startup Zomato’s loss widened to Rs 2,451 crore during the financial year ending March 31, 2020, as compared to Rs 940 crore during the previous financial year.
The revenue of the company rose 84 percent to Rs 2,486 crore during the period under review, according to regulatory filings sourced from data intelligence platform Tofler.
The loss could be attributed to Zomato’s Rs 2,485-crore acquisition of rival UberEats, the food delivery unit of cab hailing firm Uber, in January last year.
The company’s primary source of revenue is ad sales, online ordering, and Zomato Gold business segments.
It stated that three units continued to grow with even the unit economics in online ordering improving significantly with lower logistics cost and user discounts.
The company also said the COVID-19 pandemic-induced lockdown in March, 2020, hit it hard, bringing down the order volumes significantly and causing a huge reduction in dine out revenue.
“We are working on number of products to address this loss, like introducing contactless dining and delivery/takeaway products in certain geographies outside of India,” it said in the regulatory filing.
Ten new investors, including Tiger Global, Kora, Luxor, Fidelity (FMR), D1 Capital, Baillie Gifford, Mirae, and Steadview, participated in the funding round. On top of this $660 million, Zomato is also in the process of closing a $140 million secondary transaction and has already provided liquidity worth $30 million to its ex-employees.
Zomato plans to file for an IPO in the first half of next year, although whether it will list in India or the US is unclear.
If Zomato’s plans fructify, it will be the first internet IPO since B2B online player IndiaMart InterMesh made its debut on D-street in June 2019. Local search engine company Just Dial ( in 2013) and Info Edge (an investor in Zomato which debuted way back in 2006) are two other instances of internet IPOs on the domestic bourses.
Online travel company MakeMyTrip listed overseas on the Nasdaq in 2010.