Info Edge to sell shares of Zomato

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Zomato is an Indian multinational restaurant aggregator and food delivery company. Zomato provides information, menus and user-reviews of restaurants as well as food delivery options from partner restaurants in select cities. Zomato’s largest shareholder Info Edge, will sell shares worth Rs 750 crore in the upcoming initial public offering (IPO) of the food delivery company. Info Edge (India) Limited is an Indian pure play internet company, based in Noida, Uttar Pradesh.

Info Edge also runs an online job portal Naukri.com, a matrimony website Jeevansathi.com, a real estate classifieds platform 99Acres.com and an educational website Shiksha.com. As of September 2020, it also holds minority stakes in 23 online companies including two unicorns—the food delivery company Zomato and the insurance aggregator PolicyBazaar. Info Edge shared that details of the sale will be included in Zomato’s Draft Red Herring Prospectus (DRHP). The company is likely to be valued at $6-$8 billion and will emerge as the first big consumer internet startup to tap the public markets amid a bunch of other domestic internet firms eyeing an IPO in the next year or so. DRHP will be filed with market regulator, Securities and Exchange Board of India, on Wednesday. Info Edge India said its investee company, Zomato has proposed an initial public offering of fresh equity shares and also an offer for sale, according to the filing. Moreover, Info Edge shares gained 1.1% to close at Rs 4,944.50. Zomato had converted itself into a public limited company in preparation for its IPO. It was already announced on March 3 that Zomato is expected to raise $750 million to $1 billion through its IPO. The online food delivery company earlier this year raised $250 million from Tiger Global, Kora and others. After the latest round of fund raising.

Ant Group formerly known as Ant Financial and Alipay, is an affiliate company of the Chinese Alibaba Group. Furthermore, Ant Financial which is the other large shareholder in Zomato with an about 20% stake, has been unable to participate in the company’s funding rounds because of no Chinese investments in India due to pandemic. Ant’s stake is worth Rs 7,729 crore.

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