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Zomato IPO

Start Date: July 14, 2021
End Date: July 16, 2021
Issue Size : Rs. 9375 Cr
Price Band: Rs 72-76
Lot Size: 195

COMPANY BACKGROUND
Zomato Limited is one of the leading Food Services platforms in India in terms of value of food sold, as of December 31, 2020. (Source : RedSeer). Its business-to-customer (B2C) offerings include (i) Food delivery and (ii) Dining-out, in addition to its business-to-business (B2B) offering (iii) Hyperpure. Another important part of its business is (iv) Zomato Pro, its customer loyalty program which encompasses both food delivery and dining-out. During Fiscal 2020, 41.5 million average MAU (Monthly Active Users) visited its platform in India. As of December 31, 2020, its presence spanned across 526 cities in India. Its mobile application is the most downloaded food and drinks application in India in each of the last three years since 2018 on iOS App store and Google Play combined, as per App Annie’s estimates.

ZOMATO HISTORY & RECENT DEVELOPMENTS
Founded by Deepinder Goyal and Pankaj Chaddah in August 2008, Zomato was initially launched as Foodiebay. It gained instant media attention when Info Edge founder Sanjeev Bikhchandani offered to fund the company over a cold email. It took less than 72 hours for the cold email to be converted into a lucrative deal.

In January 2010, Zomato was incorporated as a private limited company. In April 2021, the company amended its Memorandum of Association and was renamed Zomato Limited in its bid to file its DRHP with SEBI and the relevant stock exchanges for the listing of its equity shares.

WHY INVEST IN ZOMATO?**

1. Strong network effects driven by its unique content and transaction flywheels – Restaurant listings on its platform include most of the following information and data points such as photos of the menu, photos of the premises, address and GPS coordinates, phone number, website, social media presence etc. Outside of Structured Content, it also has CGC which consists of reviews, ratings and photos posted by customers on its platform.

2. Widespread and efficient on-demand hyperlocal delivery network – It operates one of India’s largest hyperlocal delivery networks, based on number of delivery partners as of December 31, 2020, according to RedSeer, with 1,61,637 Active Delivery partners in month of December 2020.

3. Technology and product – first approach to business – It is a technology first organization leveraging artificial intelligence, machine learning, data science to continuously drive innovations on its platform. Its delivery partners are able to accept orders, estimate the time and navigate to restaurant’s location using its mobile application.

To apply Call: 9779270009, 9872022300, 9872722300

Source: ICICI Securities

Monday, July 12, 2021