Info Edge (India) Ltd, the operator of internet properties such as Naukri and Jeevan Sathi, said it plans to make a partial exit from Zomato by selling shares worth up to Rs 750 crore ($100 million) in the food delivery app’s upcoming initial public offering (IPO).
Zomato has proposed an IPO comprising fresh shares and an offer for sale and, according to reports, aims to raise up to $1 billion in the offering.
Info Edge was an early investor in the unicorn. It acquired a third of the company in 2010 for a mere $1 million (Rs 4.7 crore).
The investor continued to support the firm with periodic financing rounds; for example, it led a funding in 2015 to retain its majority shareholding.
Info Edge’s first partial exit came in 2018 when Alibaba Group invested $200 million in Zomato to acquire about 18% stake.
Zomato has raised over $1.3 billion across multiple rounds since its inception in 2008, as per VCCEdge data.
In February 2021, the company’s valuation soared to $5.4 billion when it raised $250 million in a round led by Kora Holdings, Fidelity Management, Tiger Global, Bow Wave Capital and Dragoneer Investment Group.
The recent round brought down Info Edge’s stake in the company to 18.4% on a fully diluted basis.
During the financial year ended March 31, 2020, Zomato’s cash burn was close to Rs 175 crore per month compared to over Rs 300 crore for closest rival Swiggy.