Zomato mulls $600m fresh funding led by existing investor Ant Financial

Photo: Mint

Food ordering and delivery platform Zomato is in the process of raising $600 million in a fresh funding round, which is likely to be led by its existing Chinese investor Ant Financial, The Economic Times reported.

The infusion of about $200 million from Ant Financial will make it the largest shareholder in Zomato at 29 per cent stake.

Singapore’s state investment arm Temasek is also expected to pump in significant capital into the round, which is expected to value Zomato at a whopping $3 billion. Besides, a bunch of hedge funds may also pool in about $150-200 million.

Zomato was valued at about $2 billion when it last raised funding earlier this year.

The development comes at a time when its arch-rival, Swiggy, is also reportedly in advanced stages of closing a $700-750-million round led by existing investor Naspers. The two are locked in an expensive battle to grab a larger share of the food delivery market.

Zomato raised about $40 million from US investor Grade Book Capital Partners in February this year. The financing was part of the Series I round, where Zomato raised $210 million from existing investor Ant Financial in October last year.

Gurugram-based Zomato’s revenue for the first half of FY20 financial year touched $205 million, up from $55 million reported in the same period last year, according to the company’s half-yearly report released on Tuesday. The company also claims to have reduced its burn rate by 60% compared to the six-month period in H2FY19.

The Gurgaon-based company’s ‘dining out’ business which includes restaurant listings, reviews, and table reservations (including Zomato Gold) accounted for around 13% of Zomato’s overall revenues at $27.3 million in H1FY20, Mint reported.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.