Online restaurant discovery and delivery platform Zomato's plans to raise fresh funds has hit a dead-end, after the company failed to find fresh investors willing to infuse funds at a valuation of $1 billion, said two investors close to the development. In November 2016, the company had appointed Morgan Stanley to initiate the process of fund raising. Sources said that Zomato which is expected to end FY17 with total revenues of $50 million, is looking at funds at 20 times higher valuation, something which the investors are not in sync with. In an email response to FE, Deepinder Goyal, founder and CEO, Zomato, said, \u201cWe typically don't comment on financing plans. We had some discussions with Morgan Stanley to help evaluate some inbound interest, but decided that we don't need to take on additional financing at this stage. Zomato has a strong balance sheet coupled with strong operating metrics and does not need or rely on any external financing anymore.\u201d Last year in July, equity research firm Jefferies had marked-down the valuation of Zomato. The research firm, in its report, had valued one share of Zomato at R130 as against R191 during the same period last year. The company\u2019s valuation was halved to $500 million. This was in line with HSBC Securities and Capital Markets downgrade in May last year. HSBC had slashed the valuation of Zomato by 50% to $500 million. The report which covered Info Edge, which holds close to 50% stake said, \u201cZomato is present in 23 markets and none is profitable, which implies that to address both the investments in last-mile delivery and losses in international operations, fund-raising will be a continuous phenomenon, suggesting current valuations don't make much sense.\u201d You may also like to watch this video Zomato reported a loss of R492.27 crore for the year ended March 31, 2016 as compared to R136 crore in FY15. Revenues increased to R184.97 crore at the end of FY16 as compared to R96.7 crore in FY15.