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Zomato IPO oversubscribed by 38.25x. What’s the future of the food business in India?

By Avinash Raj 19th July 2021

On Friday (16th July 2021), the IPO of food delivery unicorn Zomato Ltd was completed with a subscription of 38.25 times, putting an end to one of India’s most eagerly anticipated public offerings.

The Zomato IPO received bids for 29.04 billion equity shares on the third and final day of bidding, against an IPO size of 719.23 million.

Allotment of shares will be done on July 22, Refund will be processed on July 23 to one who will not get the shares (depends upon computerized lottery system) and the stock is likely to be listed on BSE on July 27.

Zomato ipo

A record made by Zomato IPO

  • 1. Largest Anchor Tranche(>4,000 Crore)
  • Most Retail Application Ever in an Indian IPO (3.2M+)
  • Highest Institutional demand for Private sector IPO in India (>1.55 Lakh crore)
  • Highest Demand Mobilization by a Private Company in an Indian IPO (>2.10 lakh crore)

Zomato Current Business Model

Presence: 525 cities among 23 countries (as of March 2021)

Partner Restaurants: 389932 (As of March 2021)

Zomato is valued at $8 billion, or slightly under Rs 60,000 crore at the upper end of the price spectrum of Rs 72-76, with a presence in 525 cities in India and an average of 6.8 million people purchasing food every month. Here is the complete Zomato business model explained.

Consumers and entrepreneurs in the food industry

Their efforts are enjoyed by all of us: consumers and entrepreneurs in the food industry. They have also generated millions of jobs in India—mainly delivery partners who do not need to be educated to take up a job that pays them far above the per capita income of an average Indian earner.

This has shattered the old-timers’ power, and young entrepreneurs who have accepted, excelled, and produced value is now leading the pack.

Take Away from Zomato’s IPO

Food delivery via aggregators is the future of the food industry (due to better customer satisfaction and better unit economics). But we have so many customers who have been able to see a growth of 10X or more, by building their platform like Zomato. 

Want to know Why White Label Food Delivery App Is The Best? 

Want to make your own business like Zomato? 

Change is tough to adjust to, yet we will become extinct if we do not. Many of us desire to run a business similar to Zomato, Swiggy, Ubereats or so. As an entrepreneur who has always been able to create huge value for my customers and shareholders, an initial public offering (IPO) is everyone’s dream.

It’s always better to create your own brand rather than Paying high commissions or depending on others. If you wish to gain a quick market share, then Yelo can be a perfect choice for your Zomato clone. It is a low-cost, market-efficient, and robust system that can deliver your app within 24 hours. Yelo uses a no-coding infrastructure that takes you to market in no time. Choose what is best for your business today.

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E-Book: The Ultimate Guide to Build On-demand Food Delivery Service Build an on-demand food delivery platform by gaining insights into the current on-demand food industry trends, how customer food delivery systems work, and its essential features. Download E-book Now
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