Zomato shares soar by as much as 80% in first trading day

Shares in Zomato gained as much as 80 percent on its first trading day on Mumbai's stock exchange, ending It at about 65 percent over its offer price to give it a market value of about $13 billion.

Zomato, India's first billion-dollar tech startup to go public, launched its IPO to raise $1.3 billion a little over a week ago.

Zomato, whose listing tested investor appetite for tech startups that suffered losses, reported revenue of $266 million for the year to March 31, 2021, and a loss of $109 million.

While India has multitudes of tech startups valued at more than $1 billion — but none of them had ever gone public in India or overseas before.

Analysts expressed concern for the startup's failure to show consistent profits after raising hundreds of millions of dollars from private investors.

The success of Zomato's IPO could also pave the way for more Indian unicorns to go public.

Two days after Zomato launched its IPO last week, digital payments firm Paytm filed for India's biggest tech IPO on record, planning to raise as much as $2.2 billion in Mumbai.

Zomato founder Deepinder Goyal thanked mobile network Jio for helping create the conditions needed for his company to succeed.

Walmart-owned Flipkart, the only Indian tech unicorn to have been acquired at a valuation of over $1 billion, is also considering a public offering.