InvestorQ : Is Temasek planning to chip in as an investor in Zomato?
Priyanka N made post

Is Temasek planning to chip in as an investor in Zomato?

NISHA Nayak answered.
1 year ago

Temasek, the sovereign investment fund of Singapore, is in discussions with Zomato to invest $100 million into Zomato. Temasek may be chipping in place of Ant Financial of China which has delayed its investment in Zomato due to strong anti-China sentiment and the new FDI rules. Temasek may bring in the funds instead of Ant Financial of China.

Zomato has run into some problems with its fund-raising due to the modified FDI policy announced in April this year. As per the new policy mandated by the government, prior government approval is necessary for investments by any entities that are based in countries sharing a land border with India, which includes China among others.

Ant Financial is an affiliate of Jack Ma’s Alibaba Group Holdings. Ant has already invested $50 million out of the committed $150 million into Zomato but has been put off by the new FDI policy. Ant Financial is the largest institutional stakeholder in Zomato with 26%. Zomato is valued at $3 billion but it is contingent on Ant Financial taking the stake. Now Temasek is expected to fill in, although final valuations are not clear.