Info Edge’s Rs. 4.7 crores Investment in Zomato Now Worth over Rs. 15,000 crore

Info Edge, the earliest and largest backer of Zomato, has seen the value of its investment in the food delivery app skyrocket more than 1,000 times to Rs. 15,000 crores, from an initial Rs. 4.7 crore.

Info Edge first invested in the company in 2010 and held around 18.5% in the Gurugram-based restaurant aggregator before its listing on Friday, when it opened at Rs 115 a share on the BSE, a nearly 52% premium to its offer price in the upper band, before settling at about Rs. 126 apiece at the close, higher by 9%.

Info Edge sold about 2.32% of its stake, or 49.3 million shares as part of Zomato Offer for Sale, and continues to hold around 15.23%which was valued at Rs. 15,000 crores as of July 23.

The market capitalization of Zomato, which became the first new age unicorn to list on the NSE and BSE on Friday, soared to about Rs. 98,000 crores intraday. The company mopped up Rs. 9,375 crores from the Public markets. Its issue, which opened last week, was subscribed about 40 times, generating demand worth Rs. 2.13 lakh crores.

“Here is the ultimate evidence why India should invest more behind its startups and in early-stage VC funds,” Info Edge founder Sanjeev Bikhchandani tweeted on Friday, referring to the returns the company had made from its investment in Zomato.

Bikhchandani also put out a graph showing Info Edge’s returns from the food delivery firm during various price points.

China’s Ant Group, which is the second-largest investor in Zomato with a 16.5% stake, saw its shareholding valued at around Rs. 16,268 crores on Day 1of listing.

Ant has been diluting its stake in the India company since last year following a tense border standoff between the two neighboring countries, which led to new foreign direct investment rules, curbing Chinese capital inflow in to domestic companies. US ride-hailing firm Uber, was which sold its India food-delivery business last year to Zomato, is the third-largest investor in the company with around 9% stake. This is worth RS. 9,000 crores.

New York-based investment firm Tiger Global is also likely to make a massive gain, as its 11-month-old bet on Zomato is now worth Rs. 5,000 crores. it invested Rs. 1,885 cores in the company last year and a further Rs. 162 crores before the IPO as part of an anchor placement.

Another New York-based hedge fund, Kora, which invested last year in Zomato, owns roughly 5% stake, now valued at Rs 4,900 crores.

“The company 13-year journey from idea to IPO has been Marked by several misses, many wins and a ton of learning along the way,” Mohit Bhatnagar, managing director at Sequoia Capital India, who used to be part of Zomato board, wrote in a blog post.    

“Two things have remained consistent: the founding team’s lasershrp focus on building the best possible product, and them insistence that food should remain at the core of their DNA. That clarity of vision, fueled by a mixture of passion, resilience and downright audacity, paved the way for Zomato IPO on the BSE today,” Bhatnegar said.

Sequoia Capital India led Zomato $35 million Series Around in November 2013, making it one of the largest investments by the VC fund at the time. Its Rs. 300 crores investment is now worth Rs 7,448 crore. S-ET

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