Ant-backed Zomato scores big in India IPO

Food delivery app Zomato enjoyed a blockbuster market debut on Friday (July 23).

Shares in the Indian firm were up around 65% by the close of trade.

That valued it at over $13 billion.

Zomato marks one of the first big home-grown startups to list in India.

Now analyst Sunil Shah says the successful debut should open the door to further deals:

"There are names making around in the markets that you know... IPO of Paytm and PolicyBazaar, these kind of internet companies, the technology companies, where the backbone is technology and the business is done on the basis of technology."

Like U.S.-based DoorDash, Zomato is mainly a food delivery app.

It's partnered with about 390,000 cafes and restaurants in 525 Indian cities.

Customers can also use it to book tables and leave reviews.

Like most tech startups, the firm is yet to make a profit.

It plans to use the money raised Friday to acquire more users and improve its delivery infrastructure.

Zomato is backed by China's giant Ant Group, which holds a stake of just over 16.5%.

It competes with SoftBank-backed Swiggy, and Amazon's food delivery service.

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