Food delivery startup Zomato has filed its Draft Red Herring Prospectus (DRHP) with the market regulator SEBI for an initial public offering (IPO) to raise up to Rs 8,250 crore.

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According to the DRHP, Zomato will offer equity shares aggregating up to Rs 8,250 crore. Of this, the company will issue fresh shares worth Rs 7,500 crore, while Rs 750 crore will be an offer for sale for its existing investor Info Edge.

Info Edge on Tuesday had announced that it would sell shares worth Rs 750 crore in the upcoming Zomato IPO.

Zomato is one of India's most prominent startups and was launched in 2008. It is present in 24 countries and employs more than 5,000 people, according to its website.

In February, the company had raised $250 million from five investors including hedge fund Tiger Global Management for a post-money valuation of $5.4 billion.

Kotak Mahindra Capital, Morgan Stanley India, Credit Suisse Securities India, BofA Securities India and Citigroup Global Markets India are the lead book running managers for Zomato's IPO.

"We have incurred restated loss for the year/period of Rs 1,069.16 million, ₹10,102.33 million, ₹23,856.01 million and ₹6,821.99 million in Fiscals 2018, 2019 and 2020, and in the nine months ended December 31, 2020, respectively,: the DRHP said.

"We expect our costs to increase over time and our losses will continue given significant investments expected towards growing our business," it added.

The company said that the COVID-19 pandemic, or a similar public health threat, has had an impact and could further impact its business, cash flows, financial condition and results of operations.

First Published:Apr 28, 2021 11:28 AM IST