IPO Delicacy

IPO DELICACY

-Nandini Jain

The two waves of the pandemic that struck India have left us all dependent and direly craving for food cooked by someone professional, and not someone pretending to be one, at home. In this era of online deliveries, impatience and instant gratification, Zomato has served as the messiah, rather Shaktiman, at the rescue of all families across the length and breadth of the country, whether affected by the virus or for sheer pleasure of savouring and evaluating different cuisines.

In large news, Zomato recently came out with its Initial Public Offer (IPO) on 14 July, 2021, something much awaited by the investors to hold stake in the company, and the IPO also takes credit for making Zomato the first online delivery company and the first Indian unicorn start-up to get listed on the bourses. This is expected to foster its market valuation by a staggering $9 billion.

The increase in unit economics of Zomato's meal delivery sector has been one of the company's most significant successes. Zomato has improved its unit economics, implying it is closer to achieving break-even points and generating a profit on each order placed by a user. This occurs when the average order value (AOV) continues to rise, which was the case throughout the pandemic. To make it clear, whenever an order is placed through Zomato, it retains a certain percentage of the order cost as commission and passes the rest to the restaurant.

The market capitalisation of the Zomato IPO is estimated to be about Rs. 60,000 crores. The enormous IPO of online food delivery business Zomato is anticipated to pave the way for many more foodtech companies to follow suit, including Swiggy. If they want to list or raise financing, the exceptional listing is likely to have a beneficial influence on their values. Zomato's first public offering (IPO) received Rs 2.1 trillion in bids and was 40 times oversubscribed. The stock finished with a 66 percent increase on 16 July, 2021, Friday.

Achieving such heights in mere beginnings, so to say, and much more to be accomplished down the line, Zomato has certainly set its focus clear and its path tight, aspiring for illuminated chances to firmly secure its feet and its seat in the market, envisioning the long term.