Zomato IPO: Investors looking for clear path to profitability, say analysts

Investors are concerned that Swiggy, given its unlisted status, may have less investor pressure on profitability versus Zomato

The growth versus profitability debate in the context of Zomato seems to be already heating up ahead of the company’s initial public offering (IPO) planned later this year. According to analysts at Jefferies, while one set of investors are looking at Zomatos’ growth metrics even at the cost of medium-term profitability, the other camp is looking for a clear path to profitability going ahead. Potential competition from Amazon, Thrive etc. is also on investors' minds and so is the dynamics between Zomato and Swiggy, they said.