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Zomato acquires fresh funds from multiple investors ahead of IPO in 2021

Zomato

Source: Woxapp

Founded back in 2008 by Pankaj Chaddah and Deepinder Goyal, Zomato operates as a delivery company and an Indian restaurant aggregator. In these past 12 years since the company’s inception, today Zomato is India’s leading food delivery start-up and according to a regulatory filing, the start-up has recently raised close to USD 195 million from multiple investors.

According to Info Edge, Zomato Private Limited has recently closed a fundraiser of USD 195 million, reportedly from six different investors which have concluded the company’s valuation worth USD 3.7 Billion.

Another report mentioned that Info Edge being one of the investors, upon closing has lost about 20% shareholding in Zomato to dilution and conversion. The fresh funding acquired by the food delivery company is a pool of money, collected ahead of company’s Initial Public Offering in 2021, added Info Edge.

Zomato Private Limited raised USD 60 million from Luxor Capital Group LP through their different modes of investment.

The start-up raised USD 50 Million from Kora Management LP, a well-known investment company through its investment medium- Kora Investments LLC and other affiliates.

Next funding worth USD 40 million was invested by Mirae Asset Naver Asia Growth Investment Private limited, the investment vehicle of Mirae Asset.

Bow Wave Capital Management LP and Steadview Capital, an investment company has invested USD 20 million each in Zomato Pvt. Ltd.

Furthermore, Pacific Horizon Investment Trust Plc, an investment vehicle of Baillie Gifford has invested USD 5 million in the food delivery start-up, according to the regulatory filing.

In September this year, Zomato also acquired USD 160 million from Singapore-based Temasek Holdings’ Tiger Global Management LLC.

Online food delivery has boosted in India because of the COVID-19 situation, people are cautious enough not to eat out in restaurants and are choosing the home delivery option, making Zomato their number one and primary choice.

Zomato Founder- Deepinder Goyal

Source: Yo!Success

In the last few years, the growth of the home delivery system in India has been significant. Earlier this year, Zomato made another move to stay dominant in the market, acquired Uber Eats in an all-stock deal that gave Uber a 10% stake in the food delivery company.

However, the lockdown was not a friend exactly, businesses went down and this acquisition could not profit the company because of the circumstances. During these past months of lockdown, Zomato turned its head towards grocery delivery businesses to stay alive, up and running.

The company is getting its business back as the nation-wide lockdown has been lifted, things are going back to normal, businesses are running as usual, once again.

 

 

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