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Zomato Company Details
Zomato’s technology platform connects customers, restaurant partners and delivery partners, serving their multiple needs. Customers use its platform to search and discover restaurants, read and write customer generated reviews and view and upload photos, order food delivery, book a table and make payments while dining-out at restaurants. On the other hand, it provides restaurant partners with industry-specific marketing tools which enable them to engage and acquire customers to grow their business while also providing a reliable and efficient last mile delivery service.
Zomato also operate a one-stop procurement solution, Hyperpure, which supplies high quality ingredients and kitchen products to restaurant partners. We also provide our delivery partners with transparent and flexible earning opportunities.
According to RedSeer, Zomato is one of the leading Food Services platforms in India in terms of value of food sold, as of December 31, 2020. During Fiscal 2020, 415 lac average Monthly Active Users visited its platform in India. As of December 31, 2020, it was
present in 526 cities in India, with 350,174 Active Restaurant Listings. Its mobile application is the most downloaded food and drinks application in India in each of the last three years since 2018 on iOS App store and Google Play combined, as per App Annie’s estimates.
While it has a footprint across 23 countries outside India as of December 31, 2020, it has taken a conscious strategic call to focus only on the Indian market going forward. Given the large market opportunity in India, it believes a focused Zomato will enhance the value for all its stakeholders.
Our Platform Offerings
Its business is built around the core idea that over time, people in India are going out to eat at restaurants more than they cook at home. To capture value out of this shift in customer behavior, it has two core business-to-customer (B2C) offerings – (i) Food delivery and (ii) Dining-out, in addition to its business-to-business (B2B) offering (iii) Hyperpure. Another important part of its business is (iv) Zomato Pro, its customer loyalty program which encompasses both food delivery and dining-out.
Each of its B2C as well as B2B offerings help increase the value of its platform for its customers, enabling it to further attract new customers and to deepen engagement with existing customers. It believes that each of its offerings also helps improve Assortment, Affordability, Accessibility and Quality (“AAAQ”) of restaurant food for its customers thereby helping grow the restaurant industry.
• Food Delivery
According to RedSeer, Zomato has consistently gained market share over the last four years to become the category leader in the food delivery space in India in terms of GOV from October 1, 2020 to March 31, 2021. It has experienced rapid growth in food delivery in India with its Orders increasing by 13.2 times from 306 lac in Fiscal 2018 to
4031 lac in Fiscal 2020 and its Gross Order Value growing 8.4 times from Rs13,34.14 Crore in Fiscal 2018 to Rs 112,20.90 Crore in Fiscal 2020
There are three key stakeholders in its food delivery business – (i) Customers, (ii) Delivery Partners, and (iii) Restaurant Partners.
• Customers: food delivery allows customers a convenient, on-demand solution to search and discover local restaurants, order food, and have it delivered reliably and quickly. On an average, 107 lac customers ordered food every month on its platform in India in Fiscal 2020 with an average monthly frequency of over
three times. In the nine months ended December 2020, 99.3% of its food delivery Orders came through Zomato’s mobile application.
• Delivery partners: It has one of India’s largest hyperlocal delivery networks in terms of number of delivery partners as of December 31, 2020, according to RedSeer. Its delivery network collected food from its restaurant partners and delivered it to customers with a median delivery time of less than 30 minutes in Fiscal 2020 (delivery time calculated from the time the Order is placed on its mobile application to the time the Order is delivered to the customer). It had 161,637 Active Delivery Partners during the month of December 2020. In Fiscal 2020, its delivery partners fulfilled 94.9% of its Orders delivered.
• Restaurant partners – on an average, in Fiscal 2020, it had 131,233 Active Food Delivery Restaurants every month. Restaurants are the backbone of its business, and it strongly believe that it can only be viable if it helps the restaurant industry grow and succeed more than what it could do without it
Customers use our dining-out offerings to search and discover restaurants, read and write customer generated reviews and view and upload photos, book a table and make payments while dining-out at restaurants. It believes it is a preferred destination for dining-out search and restaurant discovery in India.
As of December 31, 2020, Zomato had 350,174 Active Restaurant Listings on its platform and in Fiscal 2020, 1570 lac units of CGC was generated on its platform, which makes it the largest food-focused restaurant listing and reviews platform in terms of customer base, in India, as of December 31, 2020, according to RedSeer. It is also the largest online table reservations platform in India according to RedSeer, with 122 lac Covers booked through its platform in Fiscal 2020
We currently monetize our dining-out offering through advertisement sales through which restaurant partners pay the company for enhanced visibility on its platform. In Fiscal 2020, 8,064 restaurant partners paid for our advertising sales product in India. It currently do not monetize table reservations or dining-out payments.
• B2B Supplies (Hyperpure)
Hyperpure is its farm-to-fork supplies offering for restaurants in India. the company source fresh, hygienic, quality ingredients and supplies directly from farmers, mills, producers and processors to supply to its restaurant partners, helping them make their supply chains more effective and predictable, while improving the overall quality of the food being served.
Restaurant partners ordering supplies through Hyperpure get a “Hyperpure Inside” tag on their Zomato page, which is intended to provide customers with an assurance of the quality of ingredients used at the restaurant.
The company started Hyperpure in 2019 and are growing rapidly. In the month of December 2020, it supplied to over 6,000 restaurant partners across six cities in India. Hyperpure helps it increase its engagement with restaurant partners on its platform, and in turn retain and grow its loyalty with them.
• Zomato Pro
It has an exclusive paid-membership program, Zomato Pro, which unlocks flat percentage discounts for its customers at select restaurant partners across both food delivery and dining-out offerings. These discounts are available to its customers on all days in a year (except during a few pre-determined festive days) and the Pro Restaurant Partners
choose and fund the percentage discount available to Pro Members at their restaurants. Its customers become Pro Members by paying the company a membership fee. The program allows Pro Restaurant Partners to market themselves to a select audience. As of December 31, 2020, it had 1.4 million Pro Members and over 25,350 Pro Restaurant Partners in India. For more study : www.zomato.com
The promoters of Zomato ltd
The company is a Professionally managed company and doesnot have any identifiable promoter
Zomato IPO Main Objects
The Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding mainly the following object :*Funding organic and inorganic growth initiatives
Zomato IPO Details
IPO Opens on : ? 2021
IPO Closes on : ? 2021
Issue Type: Book Built Issue IPO
1) Fresh Issue(1) Up to [?] Equity Shares aggregating up to Rs 7500 Cr
2)Offer for Sale Up to [?] Equity Shares, aggregating up to Rs 750 Cr
by InfoEdge ltd
IPO Size : Rs. 8250 Cr
A Pre-IPO Placement may be undertaken by the Company for an aggregate amount not exceeding Rs 1500 Cr.
Face Value per share : Rs. 1
Zomato IPO Price Band Per Equity Share: Rs. ??
Zomato IPO Lot Size ? Shares
Zomato Listing will at BSE,NSE
Zomato IPOLtd Financial Details :
Earnings per Share 2017-18 Rs ( 0.30)
Earnings per Share 2018-19 Rs ( 2.39)
Earnings per Share 2019-20 Rs (5.09 )
Earnings per Share 2020-21,9M Rs (1.27)
Book Value of the Share as on 31.12.2020 Rs 11.77
Return on Net Worth: 17-18 (-) 8.58 %
Return on Net Worth: 18-19 (-) 37.16 %
Return on Net Worth: 19-20 (-) 113.64 %
Return on Net Worth: 20-21,9M : (-) 10.77 %
Upper Price Band/last EPS:
Upper offer price/Book Value Ratio:
Equity Shares outstanding prior to the Offer 6,660,969,150 Equity Shares
Equity Shares outstanding after the Offer ? Equity Shares
Zomato IPO Peer Comparison:
There are no listed companies in India whose business portfolio is comparable with that of our business and
comparable to our scale of operations.
Zomato IPO Lead Managers
Kotak Mahindra Capital
Morgan Stanley India Company Private Limited
Credit Suisse Securities (India)
BofA Securities India
Citigroup Global Markets
Registrar to Zomato IPO
Link Intime India Private Limited
Registered Office of Zomato
Ground Floor, 12A, 94 Meghdoot,
New Delhi 110 019
Ground Floor, Tower C, Vipul Tech Square,
Golf Course Road, Sector 43,
Gurgaon 122 009
Company Secretary and Compliance Officer
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