Zomato, an Indian food delivery startup backed by China's Ant Group (688688.SS), has applied for an IPO worth up to 82.5 billion rupees ($1.11 billion), as customers increasingly order food online during the COVID-19 pandemic.

Zomato, which was established in 2008, is one of India's most well-known startups. According to its website, it operates in 24 countries and hires over 5,000 employees.

The business raised $250 million in February from five investors, including hedge fund Tiger Global Management, for a $5.4 billion post-money valuation.

Zomato's offering will consist of a fresh issue of shares worth up to 75 billion rupees, according to draft papers submitted to India's market regulator on Wednesday. The proceeds will be used to finance growth strategies and general corporate purposes, according to the group.

In the IPO, top shareholder Info Edge (INED.NS) will sell 7.5 billion rupees worth of shares.

The group, along with domestic rival Swiggy, which is backed by Accel, dominates the $4.2 billion Indian food delivery industry, according to research firm RedSeer.

So far in 2021, India has been one of the hottest IPO markets, aided by a flood of foreign money and strong demand from mom-and-pop investors.

However, the second wave of coronavirus infections has dampened investor excitement for stocks and initial public offerings (IPOs) since late March.

The stock market listings of well-known domestic brands and names like Barbeque-Nation Hospitality Ltd (BARQ.NS) and Macrotech Developers Ltd (MACE.NS) received a muted response. find out more

The lead book-running managers for Zomato's IPO are Kotak Mahindra Capital, Morgan Stanley India, Credit Suisse Securities India, BofA Securities India, and Citigroup Global Markets India.

74.4530 Indian rupees = $1