While Indian stock markets have been trading near all-time highs, Zomato’s listing was a big test of investor appetite for loss-making tech startups. Zomato reported revenue of 19.93 billion rupees ($266 million) for the year to March 31, 2021, and a loss of 8.16 billion rupees ($109 million).
The country has a ton of so-called unicorns — tech startups valued at more than $1 billion — but none of them had ever gone public in India or overseas before. Analysts had previously expressed concern that the startups — many of which have raised hundreds of millions of dollars from private investors at extremely high valuations — needed to start showing consistent profits.
“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.
Goyal, who founded Zomato in 2008, thanked a range of Indian and global tech companies, including Jio, the vast mobile network built by Indian billionaire Mukesh Ambani, for helping create the conditions needed for his company to succeed.
“Jio’s prolific growth has set all of us up for unprecedented scale,” he said in his blog post. “Flipkart, Amazon, Ola, Uber, Paytm — have also over the years, collectively laid the railroads that are enabling companies like ours to build the India of the future,” he added.