Food delivery unicorn Zomato has raised $100 million in funding from Tiger Global’s Singapore investment arm, Internet Fund VI Pte Holdings, according to YourStory report.
Post current funding, the foodtech unicorn is valued at $3.4 billion, which is close to its competitor Swiggy at $3.6 billion valuation, according to media reports.
Zomato will use the capital to expand its business, and support overall corporate purposes. Recently, the startup raised $62 million from Singapore-based Temasek. Earlier, in January, it had raised $150 million as a part of a fresh fundraise from its existing investor Ant Financial. Further, in April, it bagged around $5 million (or about Rs 38 crore) from Pacific Horizon Investment Trust PLC in its Series J round.
In an email to its employees, Zomato CEO Deepinder Goyal said that the unicorn has $250 million cash in the bank — which is more than ever in Zomato’s history. He also noted that Tiger Global, Temasek, Baillie Gifford, and Ant Financial have already participated in its current round, and more big names will be joining the round, which will end up Zomato with $600 million in the bank very soon.
He added that this cash is being treated as a ‘war-chest’ for future M&A, and fighting off any ‘mischief or price wars’ from Zomato’s competition in various areas of its business.
In July, Zomato said in a report, “We expect to make a complete recovery over the next three to six months while continuing to maintain tight control on costs/profitability.”
“We expect a sharp recovery in our order volumes as lockdowns continue to ease and the operating environment continues to improve. The unit economics of our food delivery business has improved consistently over the last 18 months. In Q1 FY20, we used to make a contribution margin of negative Rs 47 per order; in Q1 FY21, we made a contribution margin of positive Rs 27 per order,” said Deepinder Goyal, Co-founder and CEO, Zomato, in the report.
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