Even though the pandemic has slowed down the food delivery business its is picking up pace quite fast. Now that lockdown restrictions are not there anymore, and people have started ordering online food delivery startups like Zomato seem to be right back on track. This is backed by the fact that lately, the company has been raising huge investments.
Recent funding raised by Zomato
Zomato raised the $103 million from Tiger Global, a New-York based investment firm in Series J funding. Tiger Global was allotted 25,313 class j4 preference shares after the investment. So, that roughly estimates to around Rs 3,00,325 per share. Zomato’s estimated value made a straight jump from $3.25 billion to $3.4 billion after the investment.
And now the food delivery giant has raised $52 million from KORA investments. This investment comes after the $62 million infusions from Temasek in the Series J round. The funds from the KORA investments has summed up the total amount to be funding raised by the company $216 million in the last few months.
Zomato has allotted 12,656 Series J5-1 CCPS to KORA which makes them have a stake of 1.48% in the company. This is a good thing for the company as it was planning to go public by the mid of 2021. And reports suggest that this might be the last fundraise by the company before IPO. It was estimated that KORA would have invested $100 million in the startup. So, we might see another investment made by them in near future.
How they plan to use the funding?
When Zomato raised $103 million from Tiger Global Deepinder Goyal said, “The best part is that our burn rate is very low, and our market share is accelerating in all regions. We have no immediate plans on how to spend this money. We are treating this cash as a ‘war-chest’ for future M&A, and fighting off any mischief or price wars from our competition in various areas of our business”
Zomato has been constantly raising new funds since then and thus is posing great competition to other food delivery startups. It has also been slowly and steadily reducing its losses and at the same time improving its reach and services. The recent funding they received will help them soon convert their losses to profit and emerge as the winner of the food delivery segment in India.
Which food delivery service do you use (Zomato/Swiggy/FoodPanda) or something else? Let us know in the comments below. Also, if you found our content informative do like and share it with your friends.