In mid-July, Zomato, a food delivery company, listed its shares in Indian stock markets. Its initial public offering (IPO) was oversubscribed 35 times, giving it a valuation of $12 billion. Why does a loss-making company — with no real properties or assets — command such high valuation and attract global celebrity investors like Fidelity, Morgan Stanley, Canadian Pension Fund, and the Singapore Government?
What Zomato’s $12 Billion IPO Says About Tech Companies Today
Six qualities that define a modern tech business.
August 06, 2021
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Summary.
Zomato, a food delivery company, is aiming to transform the eating habits of 1.36 billion people in India. In mid-July, its initial IPO was oversubscribed 35 times, giving it a valuation of $12 billion. Despite operating a traditional food business, Zomato epitomizes a modern tech company, and its successful IPO can teach us what a modern tech company is — and what it isn’t. It can transform whole industries, achieve expansion of scale and scope at breakneck speeds, and make enormous profits, all without requiring significant capital investments. The authors present six features that make Zomato a tech company.
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Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Global Collaboration. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to overcome barriers when working globally.