India Zomato: App’s shares soar 80% on debut

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Zomato’s delivery boy while delivering in rain.

Shares in the Indian food delivery app Zomato have increased by more than 80% in their stock market.

The listing continued for four days and comes as the Indian stock market is getting closer.

The stellar performance has shown a strong interest in investors early internet starters who did well during the epidemic.

In the continuation of the list, some analysts have raised concerns about the high value of a money-making business.

Shares in the Ant Group-sponsored app sell for up to 138.9 rupees each (£ 1.36; $ 1.87), which costs the company about $ 12bn.

Zomato’s allocation last week drew bids worth $ 46.3bn as it had been registered more than 38 times, and major institutional investors were also placing huge bets.

Before the start of the stock market, Zomato founder, Deepinder Goyal wrote on Twitter: “The future looks bright. I don’t know if we will succeed or fail – surely, as always, we will give you our best.”

Zomato’s delivery boy in Mumbai

For the year until the end of March, Zomato’s losses were reduced to about $ 110m, although operating income decreased slightly.

The home-grown food delivery platform, established in 2008, operates in about 525 cities across India and collaborates with nearly 390,000 restaurants.
As well as delivering food, Zomato incorporates reviews and allows customers to book food tables.

Zomato is facing competition in India from SoftBank backed by Swiggy and Amazon’s food delivery service.

This is India’s first unicorn stock market, which is a startup that costs more than $1 billion.

With Jack Ma’s Ant Group backing, this company has also become the first major Indian digital startup to introduce stock markets.

Digital payments made by Paytm, hotels operated by Oyo Hotels, and the Ola passenger platform are some of India’s first major startups to go public.

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