Is Zomato’s $6b IPO huge or nah?

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Hi readers,

Stock exchanges are beginning to get real busy, what with the number of tech companies going public this year. Somehow, I’ve also gotten a share of that busyness as my friends are turning to me for stocks intel, seeing how I’m working in a company that writes about tech. Unfortunately, I’m clueless about investments, so I told them to read Tech in Asia newsletters every day instead. 😉

Lucky for them (and you as well), we’ve set our sights on two hot companies that are planning to go public soon and compare how well they fare against similar companies in their industries.

Today, we look at:

• How big is Zomato compared to other food delivery majors?
• Pitting Grab’s valuation against other delivery giants in the region
• Other newsy highlights such as TikTok’s new Singapore-based CEO and Gojek’s move to go greener

PREMIUM SUMMARY

Zomato is big in India, but just how big is it, really?

Zomato is huge: The food delivery unicorn bought out Uber Eats’ Indian operations in 2020 and is going public at an expected valuation of US$6 billion to US$8 billion this year. But how does it compare with other companies like London-listed delivery service Deliveroo and Southeast Asian super app Grab, which will soon get listed too?

• The shiny valuation of Zomato is actually a lot smaller when you compare it to Grab and Uber, which are both able to ride on their ride-hailing businesses.
• Gross merchandise value: Zomato’s GMV is also much lower than Grab’s and Deliveroo’s. However, as our journalist Tito Das noted, India is still in the early stages of transitioning to a digital economy, so it has a huge growth opportunity in the future.
• Profits and losses: The three companies posted fairly similar operating losses. But according to our chart, while Grab and Deliveroo were able to bring theirs down, Zomato’s has remained stagnant over the fiscal years 2018 to 2019 and FY 2019 to 2020.

Read more: Sizing up Zomato, India’s food delivery app

PREMIUM SUMMARY

We pit Grab’s valuation against other super apps in the region