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Zomato Dulang Startup Succeeds at Debut on the Stock Exchange

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Food delivery giant Zomato posted an outstanding performance when its shares first traded on the Mumbai stock exchange (BSE Ltd) on Friday, 23 July 2021.

Zomato shares jumped 82 percent to 138 rupees per share in early trading. At the close of trading, Zomato shares were up nearly 66 percent to 126 rupees.

This New Delhi-based start-up is now valued at USD 13.3 billion or around IDR 192.87 trillion (assuming an exchange rate of IDR 14,502 per US dollar). This company is the first among other startups that plan to realize the momentum of India's initial public offering (IPO) market.

At least nine of the 11 business sectors planning an IPO are unicorns with a valuation of USD 1 billion or more that have raised several rounds of capital from local and global venture capital firms, private equities and wealthy individuals.

Zomato's IPO which closed last week was much more successful than anticipated. The IPO offer was oversubscribed by more than 38 times, with the retail category experiencing an excess of 7.45 times.

The company raised 93.75 billion rupees or around $1.25 billion from the IPO and offerings from its parent. The total proceeds from this IPO are equivalent to Rp. 18.12 trillion. So quoted from the Forbes page, Sunday (25/7/2021).

With a surge in Zomato's stock, its founder Deepinder Goyal's fortune soared to close to $1 billion.

Goyal's shareholding is valued at $650 million from its current 4.7 percent stake in Zomato, according to the Bloomberg Billionaires index. It also has more than 368 million options granted over the next six years, which if exercised would have nearly doubled its holdings in the company which has a market capitalization of USD 13.3 billion.

The IPO was a win not only for Goyal, the son of the teacher's parents who founded his company in 2009. It was also a win for a number of young Indian entrepreneurs who aspire to be influential and wealthy.

India had record funding and deals of USD 6.3 billion for tech startups in the second quarter of 2021 which underscores entrepreneurial ambitions and growing interest in venture capital in India.

“Today is a big day for us. But we didn't get here without the extraordinary efforts of the entire Indian internet ecosystem," Goyal said in a blog post.

Zomato, the first of a generation of Indian unicorns to tap into the local capital market is also an opportunity for retail investors in the country.

The IPO generated a rarely seen frenzy between them with some commotion on twitter about rationing and removing rival app Swiggy from its phones.

Goyal first got the idea for an online service when a math and computer science student at the Indian Institute of Technology, he was very frustrated with pizza orders. He was determined after graduation and joined Bain and Co to see the company's cafeteria colleagues skimming the limited menu and talking longingly about the food at a nearby restaurant.

Goyal and his partner Pankaj Chaddah started uploading cafe and restaurant menus to the company's internet with phone numbers. It was a huge hit with coworkers, prompting a weekend venture called foodiebay.com. After his wife got a teaching job at Delhi University, Goyal quit to pursue full-time self-employment.

This service quickly became popular. The founders secured $1 million in seed funding from entrepreneur-turned-investor and internet pioneer Sanjeev Bikhchandani of Info Edge India Ltd. The name was changed to Zomato and global investors such as Sequoia Capital, Tiger Global Management and Jack Ma's Ant group joined as supporters.

Gurgaon-based Zomato on the outskirts of New Delhi has since embarked on an international cara untung main togel expansion of table bookings, home delivery and restaurant and nightlife guides in 100 cities in 19 countries including Turkey, Brazil, New Zealand and Indonesia.

After the investor mood for a loss-making food startup dimmed. Goyal cut workers, tried to rationalize spending and pushed his start-up into a profitable company.

"I don't know if we will succeed or fail, we will as always give our best," said Goyal.

He hopes his party can inspire millions of Indians to dream bigger than they ever had and build something much bigger than they ever dreamed of.


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Zomato Dulang Startup Succeeds at Debut on the Stock Exchange

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Updated on July 25, 2021

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