Even if we take $3.4 billion valuation into account, Zomato looks likely to take the driver’s seat from Swiggy after the launch of the IPO. If it happens, it will be no mean feat for Zomato which was far behind Swiggy till two years back. Zomato started turning its fortunes around in the beginning of this year.
Social restrictions compelled by the pandemic have created enormous opportunities for food delivery apps like Zomato and Swiggy. These businesses, successful and in-demand now, experienced some initial hiccups in the first phase of the lockdown, but orders then grew exponentially as the days passed. Now Zomato is looking to raise $100 million from US investment firm Tiger Global Management to further its market size.
Flipkart co-founder and former CEO Binny Bansal has sold $14 million worth of shares in the company to New York hedge fund Tiger Global, according to regulatory filings accessed through data intelligence platform Paper.vc.