Zomato, India’s first start-up with a billion-dollar-plus valuation, was listed on the domestic stock exchanges on July 23 at Rs 125.85, which is 51.32 percent higher than its public issue price of Rs 76.
The stellar debut added to the net worth of Zomato’s co-founder, MD and CEO Deepinder Goyal, and Non-Executive Director Sanjeev Bikhchandani, who also founded Info Edge (India) Ltd. and other ventures.
Goyal, who owns 5.5 percent of the equity share capital of Zomato, added Rs 4,937 crore to his net worth as per the firm’s market capitalisation of Rs 98,732 crore at the end of the first day of trade on July 23, as per BSE.
The 38-year-old could own around 9.5 percent of Zomato’s shares over the next six years if he decides to exercise to vest the 368 million-plus options. This would add around Rs 9,380 crore (making him a dollar-billionaire) to his net worth (at today’s valuation of Rs 98,732 crore) by 2027. His net worth could rise from around $670 million as of today to $1.26 billion just from Zomato shares.
Bikhchandani had provided early funding of $1 million to Goyal and his colleague Pankaj Chadda when they started off. Subsequently, global investors such as Sequoia Capital, Tiger Global Management and Jack Ma’s Ant Group Co. joined as strategic investors.
The stake of Bikhchandani’s Info Edge (India) Ltd, which owned 15.11 percent of the shares on listing day, is valued at Rs 14,918 crore. Info Edge (India) Ltd. has a full market cap of Rs. 66,210 crore and Bikhchandani owns around 35 percent of the shares, which point to a net worth value of Rs. 23,173 crore.
This means that Zomato’s listing added another Rs. 5,221 crore to Bikhchandani’s net worth making it around Rs. 28,400 crore. This takes his total net worth to around $3.8 billion as of July 24, 2021 (assuming the dollar at Rs. 74.43), which is far more than $2.9 billion, as valued by Forbes earlier.
India’s dollar-billionaires list of entrepreneurs of unicorn start-ups includes names such as Byju Raveendran of Byju's, Vijay Shekhar Sharma of Paytm, Sachin Bansal and Binny Bansal, co-founders of Flipkart.