Zomato raises $150mn at valuation of $3bn

Food delivery start-up Zomato on Friday announced that it has raised $150mn in fresh funding from Alibaba subsidiary Ant Financial. With the recent investment, Zomato is now valued at $3bn. Zomato was founded by Deepinder Goyal and Pankaj Chaddah in 2008.

So far Zomato has raised a total of $840mn in funding from multiple investors. The latest funding is a part of the $600mn funding round announced by Deepinder Goyal at an event in Delhi in December last year.

In a BSE filing “This is to inform you that Zomato Media Private Ltd. has signed a definitive agreement to undertake a primary fund raise of up to USD 150 million from Antfin Singapore Holding Pte. Ltd. (which is an existing shareholder of Zomato) and/or any of its affiliates.” The company added, “The transaction values Zomato at a pre-money valuation of $3 billion.”

Earlier in 2018, Ant Financial invested $210 million in Zomato for 14.7 percent stake and later raised the stake to 23 percent. Other investors in Zomato include Info Edge India, Vy Capital, Sequoia Capital, and Temasek.

Recently there was also a possibility of Zomato acquiring UberEats’ Indian business arm at about $400mn. The recent funding might further fuel the possibility of the transaction.

There were also rumours of a merger between Zomato and its rival Swiggy but the company has repeatedly refuted such reports.

Zomato currently delivers over 1.3 million orders a day from 150,000 restaurants across India.

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