India’s Zomato raises $195mn from global investors ahead of IPO

By Rahul Vaimal, Associate Editor
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According to a regulatory filing, Zomato, the leading food delivery company based out of India, raised $195 million from global six investors.

“Zomato Pvt Ltd has closed a primary fundraise of $195 million from six different investors. The transactions valued Zomato at a post-money valuation of $3.6 billion,” top shareholder Info Edge (India) said in a regulatory filing.

According to the filing, the fundraising values the company, one of India’s most prominent startups, at a post-money valuation of $3.6 billion.

In recent months, Zomato has raised a range of funding ahead of its initial public offering (IPO) which is expected in the first half of 2021.

Of the new investments, $60 million came from the US-based Luxor Capital Group through its various investment vehicles. The food delivery company received $50 million from the US-based Kora Management, through its Kora Investments investment vehicle and/or any of its affiliates, the filing said.

South Korea’s Mirae Asset invested $40 million through its Mirae Asset Naver Asia Growth Investment Pte Ltd investment vehicle and/or any of its affiliates, it added. The filing said that Steadview Capital (China) and Bow Wave Capital Management (US) each committed $20 million, while $5 million came from Baillie Gifford & Co (UK), through its Pacific Horizon Investment Trust Plc investment vehicle and/or any of its affiliates.

In September, Zomato raised $160 million from the US-based Tiger Global Management hedge fund and the Temasek Holdings unit of Singapore.

Over the last couple of years, there has been a significant growth in the online food delivery segment as users got comfortable with the idea of enjoying restaurant food at home with just a few clicks.

Zomato purchased Indian business of Uber Eats earlier this year in an all-stock deal that will give Zomato 9.99 percent stake in the US-based ride hailing company. However, during the coronavirus-led lockdown, the business was seriously affected. Zomato also ventured into grocery and alcohol deliveries as a way to sustain itself during the pandemic.

Apart from India, Zomato serves other locations including UAE, Qatar, Brazil, Australia, Canada, US, Chile, Czech Republic, UK, Indonesia, Ireland, Malaysia, Italy, Lebanon, New Zealand, Philippines, Poland, Portugal, Singapore, Sri Lanka, Slovakia, Turkey and South Africa.