Online food delivery platform Zomato has raised another $210 million in funding from Ant Financial, the financial arm of Alibaba Group.
Info Edge disclosed in a stock exchange filing on Friday that it’s ownership in Zomato will fall from 30.91% to 27.68% as a result of the infusion from Alipay Singapore Holding Pte. Ltd or other affiliates of Ant Financial.
“We would like to bring to your knowledge that Zomato has signed a definitive agreement to undertake a primary fund raise of approximately USD 210 million from Alipay Singapore,” said Info Edge in the filing.
Earlier in February, Zomato raised $150 million in funding from Ant Financial. The Alibaba affiliate later secured the right to become the largest shareholder in the food tech startup.
“At the beginning of 2018, we were at 3.5 million orders a month. With 21 million orders per month, as far as we know, we are now the market leader in the food ordering space in India,” wrote Zomato CEO Deepinder Goyal in a blog post last Friday.
This funding will help the firm to compete with its rival Swiggy. Both Zomato and Swiggy are giving a hefty amount of discounts to attract customers and to attain leadership in the market.
At the same time, both Zomato and Swiggy are acquiring local startups to step up in their food delivery game.
Last month, Zomato acquired TongueStun Food, a Bengaluru-based startup which aggregates caterers and restaurants for office canteens. While Swiggy has acquired Scootsy, an intracity delivery service provider that provides delivery services for restaurants, toys, beauty products, and electronics items among others.
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