Stock market of Indian food delivery app Zomato have rallied over 80% in their market share initially.The listing was carried forward by four days and comes close to the all-time high of India’s stock market.
The stellar performance reflected strong investor interest in internet-based consumer start-ups that are expected to do well in the pandemic.
Ahead of the listing, some analysts had raised concerns about the high valuations of the loss-making business.
Zomato’s share offering last week drew bids worth $46.3bn as it was more than 38 times oversubscribed, with big institutional investors also placing major bets.
Ahead of the stock market debut Zomato’s founder Deepinder Goyal tweeted “The future looks exciting. I don’t know whether we will succeed or fail – we will surely, like always, give it our best.”
In the year to the end of March, Zomato’s losses narrowed to around $110m, even as its revenue from operations fell slightly.It is India’s first stock market listing of a so-called ‘unicorn’, or a start-up valued at more than $1bn.
In the coming months,the company, which is backed by Jack Ma’s Ant Group, is India’s first major digital start-up to launch shares in the stock market, and more of them are expected to do so.
India’s biggest food delivery app, which was launched in 2008, operates in about 525 cities across India and partners with almost 390,000 restaurants.
As good arsenic delivering food, Zomato besides collates reviews and allows customers to publication edifice tables.
There are some food delivering companies that is biggest competitor include SoftBank-backed Swiggy and Amazon’s food delivery service.