Infosys On What Big Zomato IPO Means For India

Infosys Chief Executive Salil Parekh has commended start-ups whose core growth engine has been the use of technology to become big and eventually launch a public share sale for raising funds for more growth.

The congratulatory message from the Bengaluru-based software services giant's CEO comes on a day when food delivery company Zomato launched its much-anticipated initial public offering (IPO) to raise over Rs 9,300 crore - the country's biggest this year and the first of a series of public listings by tech unicorns.

Mr Parekh, while taking questions during a conference call on the software services giant's first quarter results for fiscal 2022, said, "It's incredible to see the success of all of these companies, many based on technology. I think this is going to give a lot of boost to all tech companies in the country."

Zomato's shareholders include subsidiaries of Uber and Jack Ma's Ant Group. Fresh shares priced at between Rs 72 and Rs 76 rupees are being issued under the IPO that will close on Friday.

Some 30 Indian companies have announced IPO plans this year, including digital payments firm Paytm, backed by Japan's SoftBank and Chinese businessman Jack Ma. Zomato's offering, along with Paytm's, is expected to propel India's IPO market to its best year on record.

The food delivery app operates in 525 cities in India, with over 32 million people visiting the platform every month.

Infosys has done well in the first quarter of this fiscal. It raised its annual revenue forecast and posted a jump in quarterly profit, as it won more contracts from global businesses expanding their digital offerings during the pandemic.