Zomato gets Rs 760 cr boost from Tiger Global; raises funds even as money from China stops

By: |
September 10, 2020 5:50 PM

Online food delivery platform Zomato has raised Rs 760 crore in its Series J funding round from Tiger Global Management even while the coronavirus pandemic has severely hit most businesses.

The fresh funding tranche comes right after the company closed a $62 million fund from Temasek’s MacRitchie Investments.

Online food delivery platform Zomato has raised Rs 760 crore in its Series J funding round from Tiger Global Management even while the coronavirus pandemic has severely hit most businesses. The fresh funding tranche comes right after the company closed a $62 million fund from Temasek’s MacRitchie Investments. Zomato has made an allotment of 25,313 Class J preference shares at an issue price of Rs 3,09,235 per share to raise the amount, according to a Tofler report. According to the current deal, Zomato has been valued at $3.4 billion and will part with 25,313 shares.

The fresh funds for the Gurugram-based food delivery major will help it in ramping up growth while also raising heat for its deep-pocketed rival Swiggy. With its investment in Zomato, the US-based hedge fund has made its debut in the Indian online food ordering space. Post allotment, Tiger Global will command a 3.01% stake in the company. So far in 2020, Zomato has picked up around $167 million in external funding. Prior to Temasek’s investment in August, the food-tech firm had also scored a $5 million from Pacific Horizon Investment Trust in March 2020.

The fresh funding comes at a crucial time for Zomato which hasn’t been able to secure funding from one of its largest backers Ant Financial due to a ban on foreign direct investment (FDI) under the automatic route from countries that share a border with India. Ant Financial is a China-based IT-services management company.

Zomato’s revenue grew 105% to $394 million in FY20. The company also reported an increase in its losses to $293 million, compared to $277 million in FY19. The company also laid off 13% of its workforce stating a business hit amid the pandemic. The company is now focusing on driving efficiency. “In the last few quarters, we have fast-tracked our efforts towards making our business profitable and driving efficiency into our spends. While COVID-19 has impacted the size of our business, it has accelerated our journey to profitability,” Deepinder Goyal, founder and CEO, Zomato said in a blog post in July.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Public procurement: Govt’s purchase from small businesses up 3-4% YoY; bought this much in FY21 so far
2Amazon gears up for festive season as Jeff Bezos company allows customers to shop in these 4 languages
3Delayed payments: Pending MSME dues in August declined by Rs 135 cr; ministries, CPSEs paid this much