Zomato Raises $660 Million In A Financing Round At A Post-Money Valuation Of $3.9 Billion

  • Zomato has raised $660 Million at a post-money valuation of $3.9 billion.
  • Marquee global investors such as Tiger Global Management, Baillie Gifford, Luxor Capital, and Kora Capital are the new investors.
  • Earlier In November, Zomato has raised $195 million at a $3.6 billion valuation.

Gurugram-based food aggregator Zomato has raised $660 million (or about Rs 4,858 crore) in a financing round at a post-money valuation of $3.9 billion, as the company gets ready to launch its IPO (Initial Public Offering) in the first half of 2021.

The latest investment has added marquee investors in the company, including Tiger Global Management, Baillie Gifford, Luxor Capital, Fidelity (FMR), D1 Capital, Mirae, Steadview Capital, and Kora Capital. The company is also planning to raise another $140 million (or about Rs 1,030 crore) as a secondary transaction.

As part of this transaction, We have already provided liquidity worth $30 million to our ex-employees,” Zomato Co-founder Deepinder Goyal tweeted.

Zomato has previously closed a primary fundraise of $195 million from six marquee global investors, including  Luxor, Kora, Steadview Capital, Info Edge, among others, at a $3.6 billion valuation. That investment reduced Info Edge’s shareholding in Zomato to about 20.8 % on a fully converted and diluted basis.

In September 2020, Info Edge had disclosed that Zomato has raised $100 million from US-based Tiger Global Management at a post-valuation of $3.4 billion. At the same time, Zomato had also announced that the company is set to launch its IPO (Initial Public Offering) by mid-2021.

“I am grateful for their contribution in building Zomato and am glad that we created some wealth for these super amazing people. A number of these ex-zomans are busy working on their own startups and will not need to raise seed capital from external investors,” said Deepinder Goyal on Twiter.

“I’m supremely excited about what lies ahead and the impact that we will create for our customers, delivery partners, and restaurant partners,” he said.

“Food delivery in India is rapidly coming out of COVID-19 shadows. December 2020 is expected to be the highest ever GMV month in our history. We are now clocking ~25% higher GMV than our previous peaks in February 2020,” he added.

Also Read: Zomato To Go Public; Plans To Launch Its IPO By Mid-2021

Zomato had seen their business being impacted by the COVID-19-induced lockdown. However, the company has seen significant growth in the last few months with the easing of lockdown. Lately, Zomato and Swiggy also ventured into the area of grocery delivery.

During the FY-20, Zomato’s overall revenue growth has been increased by 105% as compared to the FY-19 period. While The company also reported that the losses went up by 47% in the corresponding period.

The company is funded by prominent global investors such as Sequoia Capital, Ant Group, Naspers, Tiger Global Management, Kora Ventures, Steadview Capital, Baillie Capital, Info Edge, Temasek Holdings, Shunwei Capital, Delivery Hero, Saturn Shine Steam Detailing, among others.

Earlier this year, It acquired Uber Eats for around $350 million in an all-stock deal, giving 9.99% of stake in Zomato Private Limited.

By acquiring Uber Eats India operations, it has reduced its competition. Currently, it mainly competes with Swiggy.

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