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.