Food-technology firm Zomato on Thursday said that it has raised $150 million in a fresh round of funding from Alibaba-owned Ant Financial Services. In a separate transaction, Ant Financial has bought $50 million worth of shares from Info Edge, taking its total investment in Zomato to $200 million. Following the transaction, Zomato is valued at around $1 billion. “The partnership with Ant Financial will significantly accelerate our journey. We believe that Ant is the right strategic partner for our business at this stage. We can gain tremendously by learning from them and leveraging their global network, scale and technology,” said Zomato founder and CEO Deepinder Goyal. According to the food-tech firm, the investment will be used to further build the product and technology to provide a seamless experience. The company also plans to strengthen its payment options in partnership with Ant Financial.
“Through our strategic mobile wallet partners in India and across Southeast Asia, we see immense opportunities to collaborate with Zomato to bring a much improved user experience around dining, food ordering and delivery,” said Douglas Feagin, president of Ant Financial International.
Zomato posted a 34% drop in its losses to Rs 389 crore in FY17 from Rs 590 crore in FY16, according to the annual report of its largest shareholder Info Edge. Revenue surged 81% to Rs 333 crore in FY17 from Rs 184 crore in FY16. Besides India, the company runs its services in West Asia, Southeast Asia and Australia.
In September 2017, equity research firm Nomura Financial Advisory and Securities India raised Zomato’s valuation to $1.4 billion from $1 billion. The increase in valuation was based on the last fund exercise taken up by the company in September 2015. Zomato had raised $60 million from Singapore’s Temasek Holdings and existing investor Vy Capital.