As part of the series J financial round, the company has raised funds from Kora Investments, Temasek, Tiger Global, Ant Financial and Baillie Gifford, so far amounting to over $270 million.
Last month, The Federation of Hotel & Restaurant Associations of India (FHRAI) had written to Zomato and Swiggy, seeking a reduction in commission charges on takeaway services.
Zomato is set to raise more capital as part of its series J funding round. Regulatory filings sourced from business signals platforms showed that the food delivery firm has raised Rs 38 crore ($5.12 million) from UK-based Pacific Horizon Investment Trust and is on course to garner more funds from a clutch of investors, including Mirae Asset, Steadview Capital, Luxor Capital Group, Lugard Road Capital and ASP India.
Zomato is in the process of issuing 34,873 series J preference shares to investors at an issue price of Rs 3,00,235, the company said in the filings. According to calculations, the funding amount is estimated to be over Rs 1,000 crore.
As part of the series J financial round, the company has raised funds from Kora Investments, Temasek, Tiger Global, Ant Financial and 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 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 during the pandemic. 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.