Good one buddy! 
To me (Shiv Sharma from Stocktwits), I personally donāt love this stock. I think there are a lot more attractive upcoming IPOs than this one.
I generally find this business intensely competitive and consumers are super fickle and price conscious. Fee pressure cannot withstand from consumers. Thats why the only way iād get more bullish is if they move āup the software stackā and sell more software-specific offerings. One example (although not software) of this, is their interest in supplying restaurants with groceries. This is a pretty recurring revenue stream and adds value to restaurants. My general preference is B2B over B2C except in fintech.
Management has already stated their interest in going down this restaurant ecosystem path. If they donāt, then I dont see how the unit economics of the business improve. Itās too labour intensive and gross margins are super thin.
Going forward, thereās two simple ways to track their progress in diving deeper in the restaurant ecosystem - 1) gross margins; 2) track product announcement press releases.
Some people say that āyou know what, the market opportunity is massive. Look at how under-penetrated the food delivery space isā. This is likely true. And, donāt ever doubt awesome management teams. Strong chance that Zomato looks very different in 5 years than today. Public markets are forward looking and will start pricing these changes in sooner than one expects.
But, in public markets you can own whatever you want, and India is about to see a massive inflow of quality IPOs.
In my personal opinion, I donāt rush to buy IPOs. They always pull back after the press-hyped initial run. Typically around lockup expiration (when the big VCs and early investors dump tons of shares) is a great time to enter if you like the story.
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Read somewhere, Zomato delivers record fees to bankers 2.44 % of the issue size. Bankers fee for the IPO so that bankers get them anchor investors at a premium valuation.
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How this big money games is exactly played/manipulated ?
Can u pls explain in layman wordsā¦
Who bears such cost expenses ?
The old investors or the new investors ?
How do the ; Preseed funders , seed funders , angel investors , series A,B,C investors ;
Dilute /exit / sell their shares/holding ?
Before IPO ; in the IPO ; pre or post IPO ; primary or secondary market?
How ?