The much-awaited IPO of Zomato is almost here. The company has finally planned to open its doors to the public in the month of July, 2021. And if rumours are to be believed, the price band of the Zomato IPO is also likely to be very affordable and accessible to every single rung of investor. If you’re thinking about investing in the upcoming public issue of Zomato, here’s a little bit of information on the company to help you make a more informed investment decision.
A Brief History Of Zomato
Zomato, as a company, was incorporated in the year 2010, making it one of the youngest mega startups in the country to go for a public issue. The company, during its initial stages, started off as a restaurant finder. Following in the footsteps of its competitor, Swiggy, the company formally launched its food delivery service in India in the year 2015. By 2020, Zomato expanded its food delivery business to over 500 cities, facing stiff competition from both Swiggy and Uber Eats. However, during the same year, the company acquired Uber Eats to consolidate its position in the food delivery space.
In addition to food delivery, Zomato also offers dining-out and table booking services in the business-to-customer (B2C) segment. The company also provides an exclusive paid membership service to customers through the Zomato Pro program that offers discounts and other privileges at partner restaurants.
With the launch of Hyperpure in 2019, Zomato ventured into the business-to-business (B2B) segment as well. Under Hyperpure, the company supplies freshly sourced ingredients to restaurants in India. As of December 2020, Zomato has supplied to more than 6,000 restaurant partners in as many as 6 cities in India.
The Company’s Strengths
Before you go ahead and decide to invest in the Zomato IPO, let’s take a quick look at the company’s competitive strengths.
1. Strong Food Delivery Network
With more than 161,637 active delivery partners as of December, 2020, Zomato boasts of a very strong and efficient food delivery network. The company’s order fulfilment rate stood at a massive 94.9% in FY2020, with the median delivery time less than 30 minutes.
2. Exceptional Brand Equity
Over the years, Zomato has developed a strong brand name that is easily recognizable across both small and large cities. This has led to consumers associating food delivery with the Zomato brand name, which has only served to enhance the market share of the company even further. The company is also consistently increasing brand awareness and visibility by providing its delivery partners with Zomato-branded gear.
3. Wide-range Of Restaurant Listings
As of December 2020, Zomato had around 350,174 active restaurant listings in over 500 cities of India. In addition to giving consumers a wide variety of restaurants to choose from, the company is also focused on including all the necessary and relevant information and data points. This enables consumers to make a more informed decision.
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