The Zomato IPO: A Bet on Big Markets and User Platforms!

Zomato, an Indian online food delivery company, went public on July 14, 2021, and the market reception was being watched closely by other young tech companies in India, planning their own public market entries. In this session, I begin by looking at Zomato's current numbers (moderate revenues, big losses) and the potential for growth in the Indian food delivery market. I use this information to craft my story and valuation for the company, and my story is an upbeat one of a growing food delivery market in India, with Zomato as one of the two (or three) dominant players. My resulting value per share of approximately 41 INR is below the offering price of 72-75 INR per share, but at the right price, I would buy Zomato, with the clear understanding that it is a joint bet on the company (management, competition) and the country (Indian growth and eating habits).
Blog Post: https://aswathdamodaran.blogspot.com/2021/07/the-zomato-ipo-bet-on-big-markets-and.html
Slides: http://www.stern.nyu.edu/~adamodar/pdfiles/blog/ZomatoIPO.pdf
Valuation of Zomato: http://www.stern.nyu.edu/~adamodar/pc/blog/ZomatoIPO.xlsx

Видео The Zomato IPO: A Bet on Big Markets and User Platforms! канала Aswath Damodaran