Zomato, the food-delivery app dignified to be the first among a growing community of Indian tech startups look at a listing this year. Zomato projected to raise a fund ranging from $750 million to $1 billion through its initial public offering (IPO).

“Employees this week that the IPO will most probably be a 100% primary offering, keeping in mind the long-term upshot that the investors expect from the stock. This means the company will end up rising more capital, rather than shareholders offloading stock in the open market” states Deepinder Goyal, co-founder and chief executive officer of Zomato.

He further adds, "No existing shareholder is willing to sell any shares in our IPO… People think that Zomato will be a $50 billion company in five years (I hope) and it will be unwise to sell shares right now.”

With Zomato's investors choosing not to sell any of the shares in IPO process, present backers which include the likes of Info Edge (India), Sequoia Capital, Temasek Holdings and Tiger Global, amongst others, and also would not take any in returns. This development was significant as it creates a huge war chest for Zomato in its fight against a well-capitalised competitor such as Swiggy, which is also looking for fundraising of about $800 million in fresh funds.

Zomato and competing Swiggy has been profited from a revival in the online food-ordering space after a few hard months last year due to the nationwide pandemic situation.