Grapevine: Zomato to raise $1 bn in IPO; Nykaa to raise funding ahead of float
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Food delivery company Zomato is set to raise $750 million-1 billion (around Rs 5,480-7,306.7 crore) in an initial public offering (IPO), The Economic Times reported on Wednesday.

Interestingly, no investor in the company is likely to make an exit from the firm, the report said, citing two people.

Further, Zomato co-founder and CEO Deepinder Goyal told employees at a town hall that the IPO will most likely be a primary offering.

Previous reports indicated that the company may go public at a valuation of $6-8 billion. According to VCCEdge, investors in Zomato include Temasek, Sequoia India, Tiger Global, Uber India, and Bow Wave.

The development comes just a week after Zomato raised $250 million (around Rs 1,808 crore) at a valuation of $5.4 billion, according to a stock exchange filing made by Info Edge, another backer of the company. The round was led by Kora Holdings, with participation from Tiger Global, Fidelity Management, Bow Wave, and Dragoneer.

In a separate development, beauty products firm Nykaa is in talks to raise $50-150 million (around Rs 365-1,095 crore) through a secondary financing round, The Economic Times reported.

This infusion, which will come ahead of Nykaa’s IPO, is expected to value the omnichannel firm at $2 billion, the report said, citing people.

The move will also be a part of a valuation exploration exercise by Nykaa, which is led by Falguni Nayar, ahead of the public float. 

Per the report, the company has been clocking an annual revenue run rate of around $600 million, and is seeking a valuation of around $3.5 billion (around Rs 25,560 crore).

“The company wants to realign its cap table before the IPO, hence some of the early backers may exit making way for newer investors,” one of the people cited by the report said.

The Mumbai-based firm last raised an undisclosed amount in a bridge round of funding from Boston-based asset management firm Fidelity Investments Inc in November. At the time, Nykaa said that Fidelity had bought shares from early investors and employees.

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