Ahead of the IPO, Zomato raised more than USD 560 million from 186 marquee institutional investors, including global investment funds like Blackrock, Fidelity, JPMorgan and Morgan Stanley. 10% of shares reserved for retail investors were subscribed more than two times so far. In total, institutional investors have nearly 75% of the IPO reserved for them.
There are high expectations about the growth of the food delivery market in the country of 1.3 billion people and Zomato and Swiggy’s delivery riders are ubiquitous in Indian cities, but there are also concerns that companies like Zomato and Swiggy – which are yet to be profitable due to high start-up and marketing costs – could be overvalued, according to asiatimes.com.
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