Zomato IPO seen raising $1.26 billion

India’s food delivery firm has been strongly backed by investors

Indian food delivery start-up Zomato will raise $1.26 billion by pricing its shares at 76 rupees each in its initial public offering, according to two sources who spoke to Reuters.

The sources could not be named as the information has not yet been made public. Zomato did not immediately respond to a request for comment.

The IPO is expected on Tuesday, July 29.

The company, which is backed by Ant Group, will be valued at up to $8 billion following the IPO, which is the first for a food delivery group in India.

The pricing is set at the top of the flagged range of 72 rupees ($0.96) to 76 rupees each at the start of the booking building process.

Zomato, which launched in 2008, collates restaurant reviews and offers home delivery of food, making it a competitor to Swiggy and Amazon.com’s food delivery service.

Swiggy was reported to have raised $1.25 billion in a private funding round from the likes of SoftBank’s Vision Fund 2 and Prosus.

Zomato’s IPO was strongly backed by investors attracting bids worth $46.3 billion as it was more than 38 times oversubscribed when the books closed on Friday, signalling confidence about the fast-growing sector.