Thread by @BiIndia

.@Zomato's IPO could make the company as valuable as one of its biggest investors – #InfoEdge - by @SanchDash

businessinsider.in/business/start…

@Zomato @SanchDash #Zomato had recently got everyone’s attention with its latest funding rounds, and the gaze on the startup doubled as it was known to be a pre-IPO round. It's imminent listing sheds light on another company – its first and one of the biggest investors Info Edge.

@Zomato @SanchDash While #Zomato has a $3.5 billion valuation now, analysts at HSBC peg the valuation to hit $5 billion – which makes Zomato almost as big as its investor – Info Edge. #infoedge owns a 22.71% stake in Zomato and has been one of the earliest backers of the foodtech unicorn.

@Zomato @SanchDash One of India’s first internet companies Info Edge is inching closer to a market capitalisation of $6 billion and runs four internet companies – @Naukri , @99acresIndia , @Jeevansathi_com and #Shiksha

@Zomato @SanchDash @Naukri @99acresIndia @Jeevansathi_com Interestingly, both the companies could see similar valuations even while #Zomato’s business continues to be deep in the red, while Info Edge is one of few profitable online businesses.

@Zomato @SanchDash @Naukri @99acresIndia @Jeevansathi_com However, it is worthy to note that the 12-year old #Zomato boasts of double the revenue figures as compared to that of 25-year old Info Edge.

@Zomato @SanchDash @Naukri @99acresIndia @Jeevansathi_com In an interview with Business Insider, Hitesh Oberoi, CEO of Info Edge said, “We had invested in #Zomato, when it wasn’t even called so. It was called Foodiebay then. When we had started investing, we were in the mindset to start investing in businesses that we understand.”

@Zomato @SanchDash @Naukri @99acresIndia @Jeevansathi_com While #Zomato had done away with one competition with its acquisition of #UberEats in January 2020, the online food delivery segment is in focus once again as the likes #Amazon too have entered the space.