Zomato (NSE: ZOMATO), an Indian food delivery company, made its debut on the National Stock Exchange of India (NSE) Friday, following a USD1.3 Billion initial public offering. The company, which is India’s first billion-dollar tech startup to go public, experienced an 80% rise in shares within the first day.
The delivery service’s IPO is India’s largest since March of 2020, and received approximately 35 times more offers from anchor investors than shares it had planned to sell. The IPO follows the debuts of other big name delivery companies such as DoorDash Inc. and China’s Meitun. The stock finished the day 65% above its offer price, with a market value of USD13 Billion.
“India is a tough market to operate in, but if you are building to succeed in India, you are already exceptional,” Zomato founder Deepinder Goyal wrote in a blog post Friday. “We are going to relentlessly focus on 10 years out and beyond, and are not going to alter our course for short term profits at the cost of long term success of the company.”
Investors had previously revealed concerns that India’s markets were a bubble about to burst as well as that valuations had surpassed fundamentals. However Zomato’s successful IPO is reassuring to India’s growing tech space of unlucrative unicorns, looking to go public.
“The tremendous response to our IPO gives us the confidence that the world is full of investors who appreciate the magnitude of investments we are making, and take a long term view of our business,” Goyal wrote.