Zomato, a food delivery startup in India, said on Thursday it has boosted its plan to raise $1.3 billion in its initial public offering, which opens on July 14 and closes July 16.
The loss-making startup said it will price its shares in the range of 72 Indian rupees (96 cents) to 76 ($1) and is targeting an upper limit valuation of $8.56 billion.
Zomato, which competes with Swiggy — the market leader according to several industry estimates — said after a successful IPO it will have about $2 billion in the bank. It plans to list on Indian stock exchanges.
The 12-year-old Gurgaon-headquartered Indian startup — which counts Info Edge, Temasek, Tiger Global, and Ant Group among its largest investors and has raised over $2.2 billion to date — is the first high-profile tech startup in India to explore the public markets.
In a virtual press conference on Thursday, the startup executives said Zomato, which has search and discovery in nearly two dozen markets, will focus largely on India and will explore categories such as online grocery delivery in the future.
The executives dismissed Amazon as a serious competitor for now. “There’s no major impact on market share from Amazon so far,” the company’s chief financial officer said. Amazon entered the food delivery market last year and is operational in just Bangalore for now.
Zomato also revealed its latest financial on Thursday. For the financial year that ended in March this year, its revenue was down 23% to $283 million, and it also shrunk its losses to $110 million, down 66% from the same period a year ago.