Zomato gets $250 million more, now valued at $5.4 billion

BENGALURU: Online food delivery platform Zomato has raised another $250 million in primary capital from existing and new investors, ahead of its potential initial public offering (IPO) this year. Info Edge, one of the early investors in Zomato, said in a stock exchange filing that Zomato, post this investment, is valued at $5.4 billion compared to just under $4 billion in December when it closed a $660 million funding.
Existing investors Kora Management has led the round with $115 million capital while Fidelity Management & Research Company and Tiger Global have put $55 million and $50 million in the Gurgaon-based company, respectively. Bow Wave has put $20 million and new investor Dragoneer Investment Group, which recently invested in ed-tech startup Unacademy, has invested $10 million in Zomato, according to Info Edge filings.
Post this, Info Edge now holds little over 18% stake in the company, which primarily competes against Bengaluru-based Swiggy. A Zomato spokesperson declined to comment outside the regulatory filings.
Zomato also counts China’s Alibaba group affiliate Ant Group as one of its investors which had plans to invest $150 million in the company. It had put only one-third of the amount in Zomato after which border tensions between India and China led to blocking of Chinese investments in India. TOI on Monday reported saying the government, after nine months, had started clearing certain Chinese FDI deals on a ‘case-by-case’ basis.
After a difficult year for the sector hit by the pandemic, platforms like Zomato have surpassed pre-Covid-19 level order volumes. Swiggy too is in the middle of raising funds for its battle against arch rival Zomato.