Info Edge’s mega returns and other takeaways from Zomato’s IPO prospectus

Early backer Info Edge can expect at least 17x returns on its investment, and Sequoia about 10x, as Zomato files for a public share listing. Ant Financial will likely double its investment

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By 

Aditi Shrivastava

Madhav Chanchani

April 28, 2021

7 Min Read

Zomato is the first of nearly 50 Unicorns—privately held technology companies valued at over $1 billion—to file for a public offering in India. The development is historic. 

Till now, Indian internet and tech businesses, such as MakeMyTrip, Info Edge and IndiaMart Intermesh, have crossed $1 billion in valuation or market capitalization only after their IPOs. Also, while Info Edge and IndiaMart were profitable, Zomato is expected to continue making losses. 

Its IPO will be a test of Indian investors’ appetite for the Unicorn phenomenon. 

First, the main points: Zomato is looking to mop up close to $1.1 billion, which includes a $100 million share sale from its largest shareholder, Info Edge. The food delivery company is also in discussions with investors for a $200 million pre-IPO placement. Depending on the success of this, Zomato will adjust its final IPO size.

Here are The CapTable’s main takeaways from Zomato’s Draft Red Herring Prospectus.

Mega Returns For Info Edge, Not Too Shabby For Ant

Info Edge’s investments in Zomato, which began with a cheque of Rs 4.7 crore ($630,000) for a 33% stake in August 2010, are now worth at least $1 billion. Since then, Info Edge has participated in seven rounds of financing, pouring in a total of over $61 million in Zomato.

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