{"id":807,"date":"2021-07-11T07:22:46","date_gmt":"2021-07-11T07:22:46","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=807"},"modified":"2022-01-31T13:35:27","modified_gmt":"2022-01-31T13:35:27","slug":"growth-drivers-investment-in-grofers-competitors-and-everything-you-need-to-know-about-zomato-ipo","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/growth-drivers-investment-in-grofers-competitors-and-everything-you-need-to-know-about-zomato-ipo\/","title":{"rendered":"Growth drivers, investment in Grofers, competitors and everything you need to know about Zomato IPO"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p>Historically, no IPO has got so much popularity that upcoming IPO\nof Zomato has received. It would not be wrong to say that the social media\nplatforms are flooded with Zomato IPO and its associated information. There are\npeople who might not know about IPO but what they know is that Zomato IPO is coming.\nThe digital food delivery platform IPO is expected to turn various readers into\ninvestors. IPO of Zomato is one of the most-awaited issues in the\nprimary market and finally it is going to material on July 16.<\/p>\n\n\n\n<p><strong>Zomato IPO\nDetails:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Issuer Company: Zomato<\/li><li>Industry: Hospitality<\/li><li>IPO Size: 9,375 cr.<\/li><li>Price Band: 72-76<\/li><li>Issue Open Date: 14 July, 21<\/li><li>Issue Close Date: 16 July, 21<\/li><li>Listing Date: 27 July, 21<\/li><li>Minimum Lot Size: 195 shares<\/li><li>Face Value: 1 Rs. Per share<\/li><li>Employee Discount: NA<\/li><li>Retail Allocation: 10%<\/li><li>Listing Exchange: NSE, BSE<\/li><\/ul>\n\n\n\n<p><strong>Composition\nof Issue Size<\/strong><\/p>\n\n\n\n<p>The issue size of 9,375 crores is a mix of fresh issue of Rs. 9,000\ncrores and offer for sale of Rs. 375 crore. <\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Offer for Sale comprises sale of up to 4.93\ncrore shares by Info Edge.<\/li><li>According to Draft Red Herring Prospectus, the\nissue comprises of Rs. 9,000 crores from issuance of fresh equity will be\nutilized for funding organic and inorganic growth.<\/li><\/ul>\n\n\n\n<p>Organic Growth: When a company increases its capacity\nutilization. Zomato will spend on technology, expand its delivery\ninfrastructure, add more delivery partners and ties with more restaurants for\ncustomer acquisition.<\/p>\n\n\n\n<p>Inorganic Growth: When a company undertakes mergers and acquisitions to achieve synergy.<\/p>\n\n\n\n<p>Must Read: <a href=\"https:\/\/www.invest19.com\/blog\/zomato-ipo-is-coming-soon-its-time-to-deep-dive-into-its-financials\/\">Zomato IPO is coming soon! It\u2019s time to deep dive into its financials.<\/a><\/p>\n\n\n\n<p><strong>Industry\nGrowth Drivers<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Country of 2<sup>nd<\/sup> largest population\npromises to provide huge opportunity.<\/li><li>Rising penetration of smartphones will increase\nthe reach of Zomato platform.<\/li><li>Rising trend of contact-less dining due to\nCovid-19 pandemic.<\/li><li>Increase in per capita income will push people\nfor dining due to high purchasing power.<\/li><li>Higher standard of living will raise preference\nfor food ordering from digital platforms.<\/li><li>Indian market size of food ordering business\nwill increase to $11 billion in FY2026.<\/li><\/ul>\n\n\n\n<p><strong>Investment in Grofers<\/strong><\/p>\n\n\n\n<p>With intentions of becoming a food distributor platform\nwhose operations are not restricted to food had acquired Hyperpure and now it\ndelivers fresh fruits, vegetables, meat and dairy products to various restaurant\npartners. Now, Zomato has made $100 million investment in Soft Bank-backed-Grofers,\na digital grocery delivery platform that has strong footprints in the Indian\nmarkets. Zomato will launch a grocery delivery feature on the application that\nwill help him to widen their revenue sources and build a food delivery\necosystem for it. This will provide synergy in their operations and both\napplications are expected to gain a healthy amount of traffic.<\/p>\n\n\n\n<p><strong>Peers\nComparison&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/strong><\/p>\n\n\n\n<p>In times when Zomato had entered into food delivery industry there\nwere plenty of competitors such as Foodpanda, Snappfood, Swiggy, Uber Eats\nDingdong Maicai and TinyOwl. The rising popularity of Zomato due to heavy\nspending on advertising and distribution of discount coupons had forced the\nother players to shut down their operations from the Indian market except\nSwiggy and Uber Eats. In 2020, Zomato acquired assets of Uber Eats. Only Swiggy\nis a legitimate competitor of Zomato.<\/p>\n\n\n\n<p>The entry of world\u2019s largest digital platform Amazon into food delivery business is a terror itself. Bezoz-led-Amazon claims that its food delivery segment is serving in 62 pin codes across Bengaluru. More than 2,500 restaurants and cloud kitchens are now serving customers on its platform. The tech giant is flooded with a lot of funds and his entry into the arena has shaken other players. <\/p>\n\n\n\n<p>Also Read: <a href=\"https:\/\/www.invest19.com\/blog\/why-should-you-stick-to-investing-in-market-leaders-only\/\">Why should you stick to investing in market leaders only?<\/a><\/p>\n<div class='epvc-post-count'><span class='epvc-eye'><\/span>  <span class=\"epvc-count\"> 3,231<\/span><\/div><div class=\"pld-like-dislike-wrap pld-template-1\">\n    <div class=\"pld-like-wrap  pld-common-wrap\">\n    <a href=\"javascript:void(0);\" class=\"pld-like-trigger pld-like-dislike-trigger \" title=\"\" data-post-id=\"807\" data-trigger-type=\"like\" data-restriction=\"ip\" data-ip-check=\"0\" data-user-check=\"1\">\n                        <i class=\"fas fa-thumbs-up\"><\/i>\n                    <\/a>\n    <span class=\"pld-like-count-wrap pld-count-wrap\">12    <\/span>\n<\/div><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Historically, no IPO has got so much popularity that upcoming IPO of Zomato has received. It would not be wrong to say that the social [&hellip;] <span class=\"read-more-link\"><a class=\"read-more\" href=\"https:\/\/www.invest19.com\/blog\/growth-drivers-investment-in-grofers-competitors-and-everything-you-need-to-know-about-zomato-ipo\/\">Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":808,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[180,70,2,7,10],"tags":[],"class_list":["post-807","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-ipo","category-stock-market","category-investment","category-featured"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/807","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=807"}],"version-history":[{"count":2,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/807\/revisions"}],"predecessor-version":[{"id":810,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/807\/revisions\/810"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/808"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=807"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=807"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=807"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}