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After Zomato listing gains, CEO Deepinder Goyal joins super-rich club

With a net worth of around $650 million, Goyal is on track to becoming a billionaire

Zomato was India’s first startup to head for an IPO | Reuters Zomato was India’s first startup to head for an IPO | Reuters

Issued at a price of Rs 76 a share, Zomato ended July 23 on domestic stock exchanges at a price of Rs 125.85–51.32 per cent higher than the price it was first issued at.

For CEO Deepinder Goyal, the good news is more than just the fact that his foodtech startup was oversubscribed upon IPO by 38.25 times on the last day of issue or that Zomato now has a market capitalisation of $13.3 billion: With the higher valuation, his net worth has jumped to around $650 million according to the Bloomberg Billionaires Index, which puts him among India’s fledgling club of the ultra-rich.

This, with just a 4.7 per cent stake in Zomato. But Goyal also owns over 368 million options that vest over the next six years, which if exercised could almost double his stake in the company, Bloomberg reported.

In a letter to shareholders, Goyal thanked them and also acknowledged Reliance Jio.

''India is a tough market to operate in, but if you are building to succeed in India, you are already exceptional. I say that because I believe Zomato and Swiggy are two of the best food delivery apps in the world today. We have a long way to go before we can call ourselves world class by our customers’ standards, but we are determined to get there,'' he said.

"Today is a big day for us. A new Day Zero. But we couldn’t have gotten here without the incredible efforts of India’s entire internet ecosystem. Jio’s prolific growth has set all of us up for unprecedented scale. 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. We stand proudly and humbly on the shoulders of giants, and we thank everyone for giving us, and so many other startups, the opportunity to look ahead into the future," he wrote.

Zomato was India’s first startup to head for an IPO. Now Goyal joins Paytm’s Vijay Shekhar Sharma, Flipkart’s Sachin and Binny Bansal, and Byju’s Byju Raveendran as the latest members of the ultra-rich startup entrepreneur club.

The company, backed by Jack Ma's Ant Group Co, is the first from a long list of Indian unicorn startups to launch an IPO. It is also the first among Indian online food aggregators.

The IPO, which will give Zomato a valuation of Rs 64,365 crore, was touted as the second-biggest since SBI Cards and Payment Services' Rs 10,341 crore issue in March 2020. It will surpass Indian Railway Finance Corp’s offering in January.

Post-IPO, the valuation of Zomato is more than the combined market capitalisation of five listed fast food and restaurant companies--Jubilant FoodWorks (the master franchisee for Domino's Pizza in India), Burger King India, fast food restaurant holding company Westlife Development Ltd, Barbeque-Nation Hospitality and Speciality Restaurants.


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