India’s current rate of spawning unicorns, or startups with at least a billion dollars in valuation, is almost three per month. But all that action is in private markets; practically nothing of the digital economy trades publicly. Which explains the nervous excitement over this week’s initial public offering by one of the country’s two dominant online food-delivery services.
As China cracks down on data-heavy businesses from finance to ride-hailing, Zomato Ltd., backed by Jack Ma’s Ant Group Co., is beefing up its IPO in the Indian market to 93.75 billion rupees ($1.3 billion) because of high demand.
At the top of the indicated price range, the app will have a market value of almost $8 billion, or 45% more than Jubilant Foodworks Ltd., which owns the South Asia franchise of Domino’s Pizza Inc. While Jubilant packs roughly a quarter of its revenue into earnings before interest, tax, depreciation and amortization, Zomato’s operations regularly bleed cash.
Opinion: Zomato s Pricey IPO Has Arrived Hot, Beating Other Unicorns
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Zomato - A hot Indian food IPO during a tech cold war - The Hindu BusinessLine
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