Food delivery: Zomato to raise $146 million as part of Series J funding

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November 7, 2020 7:00 AM

Zomato is in the process of issuing 34,873 Series J preference shares to the new investors at an issue price of Rs 3,00,235, the company said in the filings.

It has already raised Rs 38 crore ($5.12 million) from existing investor UK-based Pacific Horizon Investment Trust.It has already raised Rs 38 crore ($5.12 million) from existing investor UK-based Pacific Horizon Investment Trust.

Zomato is set to raise around $146 million (Rs 1,085 crore) as part of its Series J funding round from a clutch of investors, including Mirae Asset, Steadview Capital, Luxor Capital Group, Lugard Road Capital and ASP India, regulatory filings sourced from business intelligence platform Tofler showed.

It has already raised Rs 38 crore ($5.12 million) from existing investor UK-based Pacific Horizon Investment Trust.

Zomato is in the process of issuing 34,873 Series J preference shares to the new investors at an issue price of Rs 3,00,235, the company said in the filings.

As part of the Series J financial round, the firm has raised funds from Kora Investments, Temasek, Tiger Global, Ant Financial, Baillie Gifford so far amounting to over $270 million.

The total size of the investment round is pegged at about $600 million. Bulk of the capital will be used to fund “future M&A, and fighting off any mischief or price wars from our competition in various areas of our business”, founder & CEO Deepinder Goyal had said in an internal mail to employees earlier.

Zomato plans to file for an IPO (initial public offering) sometime in the first half of 2021.

The food delivery sector has seen a quick turnaround as home-bound customers took to online ordering of food. Last month, Zomato said food delivery volumes in India have reached the pre-Covid peaks and the sector is expected to grow at around 15-25% month-on-month for the foreseeable future.

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