Hungry for more, Zomato pockets a cool $60-m check

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Bengaluru | Published: November 20, 2014 4:14:13 AM on Wednesday announced raising $60 million at a post-money valuation of $660 million.

In what once again shows global investors’ growing appetite for a piece of India’s consumer internet play, Delhi-based restaurant discovery service on Wednesday announced raising $60 million at a post-money valuation of $660 million. This funding round, led by Info Edge and Vy Capital, along with existing investor Sequoia, will help Zomato accelerate its global expansion plans and new product development.

Over the next year, Zomato plans to expand to 14 more countries in Europe, Southeast Asia, Australia and the Americas. With this round, Zomato has raised $113 million thus far. The last round was in November 2013, when it raised Rs 227 crore (around $38 million) from Info Edge and Sequoia Capital at a valuation of Rs 1,000 crore (around $167 million).

Deepinder Goyal, founder and CEO of Zomato, said: “In the past year, we have added eight countries and millions of new users. From just restaurant discovery and menu, Zomato has now become a vast global community driven by social interactions. This is an exciting point in our journey as we accelerate our way across the globe.”

The six-year-old company has menu and photos for over 3 lakh restaurants across more than 100 cities in 18 countries, including India, the UK, Canada, Lebanon, UAE, Turkey, New Zealand, Poland and the Czech Republic. Driven by 300% year-on-year revenue growth, Zomato had, of late, embarked on an expansion drive, acquiring four companies — MenuMania in New Zealand, Lunchtime in the Czech Republic, Obedovat in Slovakia and Gastronauci in Poland.

Info Edge continues to remain the majority stakeholder in Zomato, though the company declined to disclose the stake picked up by investors. In a filing to the Bombay Stock Exchange, Info Edge, which also owns online job portal, said the company invested about $31 million in the latest round of funding, taking its total investment in Zomato to about $55 million. It holds a 50.1% stake in Zomato Media.

Vy Capital, a technology-focused venture capital firm, is the latest risk capital entrant into India. The firm was founded by Alexander Tamas in 2013, who was formerly with Russian billionaire investor Yuri Milner’s investment firm DST, before quitting to start his own firm.

Sanjeev Bikhchandani, founder of Info Edge, said: “Our first investment in Zomato was made almost four years ago, and the team has shown phenomenal progress since then.”

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