InvestorQ : Why has Zomato raised another round of funding?
shrinidhi Rajan made post

Why has Zomato raised another round of funding?

2 years ago

Zomato has managed to raise another $195 million from a clutch of 6 investors as per a recent filing. This deal assigns an overall indicative valuation of $3.6 billion for the business of Zomato. The company has already been a Unicorn for quite some time now.

Once the fund raising process is completed, the stake of major Indian shareholder, Info Edge, will stand reduced to just about 20.8% on a diluted basis in Zomato. It is well documented by now that Zomato has planned its IPO in the first half of 2021.

Out of the latest round of $195 million, nearly $60 million came from Luxor Capital Group via different vehicles while another $50 million came from Kora Investments LLC. In addition, Mirae Asset Naver Asia Growth Investment Fund chipped in with $40 million while Steadview Capital and Bow Wave Capital invested USD 20 million each.

It may be recollected that only in September this year Zomato had raised $160 million from Tiger Global Management and Temasek Holdings at around similar valuations. Zomato had also acquired the Indian business of Uber Eats in an all-stock deal earlier this year. That business has not done too well in the pandemic lockdown.