Zomato, the Indian food delivery startup has jumped more than 70 percent in their stock market debut on Friday. The jaw-dropping stock market debut reflects investors increasing interest in the multinational restaurant aggregator.
The developments in the tech world paved the way for several innovations, with food delivery applications being among them.
Zomato’s success story encompasses two main elements; high quality technology combined with people’s love for various cuisines. The cash-burning startup has recently attained valuation of around $12 billion, according to The Financial Times.
Based on the National Stock Exchange of India, the first public offering settlement was priced at one dollar a share, but the stock opened at $1.56. Zomato is providing 1.23 billion shares, valuing the IPO at one billion dollars.
The company that launched back in 2008 has officially hit the largest stock market debut in more than a year.
Last week, Zomato was able to draw in $46.3 billion in bids, with major entrepreneurs and investors competing on who can place the biggest bet, according to Reuters.
The tech scene in India relies heavily on foreign investments; however, the advancements Zomato is witnessing has encouraged several startups to consider the public market instead.
“This is the first company in India, in my memory, that has gone for an IPO in India without turning a rupee of profit,” SR Srinivasan, an independent investment adviser told The Financial Times. “It shows the level of maturity in the market. Hopefully, it’ll be positive, but I’m guarded.”
While Zomato founders Pankaj Chaddah and Deepinder Goyal have long attributed the application’s success to hiring the right people, one cannot deny that the way the founders simplified the technological process of ordering whatever you crave online was the main factor to its tremendous success.