Had anyone said in April 2020 that Indian food delivery unicorn Zomato would soon announce announce Moneycontrol Zomato plans to file for IPO in 2021 first half Read more plans to go public in the first half of 2021, they would have been laughed at.
Recipe for future
To eat IPO cake, Zomato needs to expand its menu
The food delivery unicorn couldn’t have asked for a better time to go public. But listing in India means having a clear road to profitability
US startup DoorDash’s recent blockbuster IPO showed investors’ renewed love for food delivery during the pandemic
Zomato will also count on the comfort investors will have in the fact the food delivery in India is a virtual duopoly
But the US$3.9 billion-worth company, unlike DoorDash, will be under pressure to make money soon if it does list in India
Being profitable is partly a function of Zomato being able to successfully diversify beyond food delivery, which is not easy