Zomato raises $195M in funding from 6 investors, valuation touches $3.6B

Info Edge on Friday said its investee company ZZomatoas raised $195 million (about Rs 1,455.4 crore) in funding from six investors including Luxor, Kora and Steadview, valuing the online food ordering platform at $3.6 billion.

"Zomato Pvt Ltd has closed a primary fundraise of $195 million from six different investors... the transactions valued Zomato at a post-money valuation of $3.6 billion," Info Edge said in a regulatory filing.

Upon closing of the fund raise, Info Edge's shareholding in Zomato shall stand reduced to about 20.8 percent on fully converted and diluted basis, it added.

Comments from Zomato could not be elicited immediately.

Of the $195 million, $60 million was raised from Luxor Capital Group LP, through its different investment vehicles.

$50 million came from Kora Management LP , through its investment vehicle Kora Investments I LLC and/or any of its affiliates, the filing said.

Mirae Asset , through its investment vehicle Mirae Asset Naver Asia Growth Investment Pte Ltd and/or any of its affiliates, invested $40 million, it added.

Steadview Capital and Bow Wave Capital Management LP each invested $20 million, while $5 million came from Baillie Gifford & Co ,through its investment vehicle Pacific Horizon Investment Trust Plc and/or any of its affiliates, the filing said.

In September, Info Edge had informed the stock exchanges about Zomato raising $160 million (about Rs 1,173 crore) in funding from Tiger Global and Temasek Holdings subsidiary, MacRitchie Investments, valuing the online food ordering platform at $3.3 billion.

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Post the September transaction, Info Edge's shareholding in Zomato was at 22.2 percent.

Zomato - which competes aggressively with Prosus-backed Swiggy in the Indian market - plans to go for an initial public offering (IPO) in the first half of 2021, its founder and CEO Deepinder Goyal had told its employees at that time.

The online food delivery segment has seen significant growth in the last few years with Zomato and Swiggy competing head-on to grab market share.

Earlier this year, Zomato acquired the Indian business of Uber Eats in an all-stock deal that will give the ride hailing company 9.99 percent stake in Zomato.

Interestingly, in May this year, Amazon India threw its hat in the ring and announced the launch of its food delivery operations in select parts of Bengaluru.

Zomato and Swiggy had seen their business being impacted by the COVID-19-induced lockdown. During this time, Zomato and Swiggy ventured into the area of grocery delivery. With the easing of lockdown, the companies have been seeing demand returning on these platforms.