Sanjeev Bikhchandani, founder of Info Edge, who owns Naukri.com, made a 1050x return on his investment in 11 years with the blockbuster listing of food delivery startup Zomato on Friday (23rd July, 2021). Zomato shares, which were marketed at Rs 76 in the initial public offering, closed 66% higher at Rs 126 per share, valuing the company at Rs 98,849 crore.

Key Highlights

• Zomato shares, which were issued at Rs 76 in the initial public offering, closed 66% higher at Rs 126

• Zomato’s market capitalization rose to nearly Rs 1 lakh crore on day 1 of its listing

• After selling 2.32% of its stake through the OFS, Info Edge now holds 15.23%

Info Edge, one of the company’s earliest and biggest investors, invested Rs 4.7 crore in Zomato in 2010 for around 18.5% of the company. By selling 4.93 crore shares at Rs 76 through the IPO, the company now holds 15.23% of the company. Info Edge’s remaining stake is now worth around Rs 15000 crore.

Sanjeev Bikhchandani posted on microblogging site Twitter about the return he made on Zomato 2010 to encourage others to invest in startups. “Here is the ultimate evidence why India should invest more behind its startups and in early stage VC funds,” Sanjeev Bikhchandani wrote on Twitter above a graph showing InfoEdge’s returns at various price points.

On the first day of listing, Ant Group, the second largest shareholder in Zomato, will see its stake valued at approximately Rs 16,268 crore. The Ant Group has been dilution its stake in the Indian company ever since the government enacted new foreign direct investment rules last year, slowing the flow of Chinese capital into local firms.

This is the first homegrown startup in the country to sell shares successfully on Indian stock exchanges. It is likely that other startups will follow Zomato’s lead and list as well. “Zomato is definitely a big event for the startup community, and for the other technology companies that are waiting to come to the capital market,” news agency Reuters quoted as saying Siddhartha Khemka, head of retail research, broking & distribution at Motilal Oswal Financial Services.