Zomato has raised $50 million (Rs 353.58 crore) in fresh funding from Antfin Singapore, according to the company's filings sourced from business intelligence platform Tofler.
Zomato has raised $50 million (Rs 353.58 crore) in fresh funding from Antfin Singapore, according to the company’s filings sourced from business intelligence platform Tofler.
The funding, part of the Gurgaon-based food delivery firm’s Series J financing round, is the first tranche of the $150-million fund raise announced by the company last week. With the latest investment, Zomato’s total fund tally stands close to $850 million.
In a stock exchange filing last week, Info Edge, an investor in Zomato, said it had signed a “definitive agreement” to undertake a primary fund raise of up to $150 million from Antfin Singapore that will fetch Zomato a pre-money valuation of $3 billion. Post the funding, Info Edge’s shareholding in Zomato will get reduced to about 25.13%, the firm said. The funding comes amid Zomato’s advanced talks with Uber to acquire its India food business. Reportedly, Uber is in talks to invest a fresh $100-200 million as part of the sale of UberEats. The fund, which is expected to be infused in the combined entity of Zomato and UberEats, will be a critical part of the share-swap deal between the two firms, the Economic Times reported last month. The share-swap deal is likely to consider the $3-billion valuation, according to media reports
In December 2019, Zomato’s founder and CEO Deepinder Goyal had said the company was looking to raise up to $600 million in a new funding round. The $150-million funding is a part of the larger deal.
Zomato that claims to deliver 40 million orders per month posted losses of Rs 570.52 crore in FY19 from 78.49 crore in FY18. Goyal earlier said the firm would turn profitable by the end of 2020. Zomato claims to have reduced its cash burn to $20 million in October 2019 from $45 million in March last year. Zomato, which delivers in over 500 cities, is locked in an intense competition with Swiggy to grab a bigger pie of the food delivery market. India’s online food delivery market is estimated to touch $12.53 billion by 2023.