<article>Online restaurant discovery and food delivery firm <a href="http://dealstreetasia.com/tag/zomato" target="_blank" rel="noopener">Zomato</a> is raising $200 million from <a href="http://dealstreetasia.com/tag/ant-financial" target="_blank" rel="noopener">Ant Financial</a>, the payments affiliate of Chinese e-commerce giant <a href="http://dealstreetasia.com/tag/alibaba" target="_blank" rel="noopener">Alibaba</a>.</article>

Online restaurant discovery and food delivery firm <a href="http://dealstreetasia.com/tag/zomato" target="_blank" rel="noopener">Zomato</a> is raising $200 million from <a href="http://dealstreetasia.com/tag/ant-financial" target="_blank" rel="noopener">Ant Financial</a>, the payments affiliate of Chinese e-commerce giant <a href="http://dealstreetasia.com/tag/alibaba" target="_blank" rel="noopener">Alibaba</a>.
In a deal comprising primary and secondary transactions, Ant Financial will invest $150 million directly in the Indian startup. It will also buy a 6.66 per cent stake from <a href="http://dealstreetasia.com/tag/info-edge" target="_blank" rel="noopener">Info Edge India Ltd</a>, the largest stakeholder in Zomato, for $50 million. The Chinese firm will reportedly hold an 18 per cent stake in Zomato after completion of the deal.
In a stock exchange filing, Info Edge said it will sell the stake in Zomato either directly or indirectly through its unit Naukri Internet Services Ltd. Following completion of the deal, its stake will come down to 30.91 per cent from 44.74 per cent currently. The deal is scheduled to be completed by April 15, it added.
According to media reports, the deal gives Zomato a post-money valuation of $1.1 billion, making it the latest unicorn in the Indian startup space.
The deal comes the same day as Ant Financial-parent Alibaba leading a <a href="https://www.dealstreetasia.com/stories/alibaba-leads-300-million-funding-indias-top-online-grocer-91659/">$300-million funding round in online grocer Bigbasket</a>.
Founded in 2008, Zomato has raised around $225 million in capital so far. Its last funding round came in September 2015, when it raised $60 million from Singapore’s Temasek Holdings and Vy Capital. Sequoia Capital and Info Edge are the other institutional investors in Zomato.
In April 2017, Zomato posted an 80 per cent year-on-year increase in revenue to reach $49 million due to growth in advertisements and food delivery business.
This latest funding will help Zomato compete more aggressively with rivals in food delivery like Naspers-backed Swiggy, which raised $80 million last year. Recently, ride-hailing major Ola also re-entered the food tech space by acquiring the Indian operations of Foodpanda; it has committed an investment of $200 million in the food delivery space.
On Thursday, Alibaba Group also announced that it will buy 33 per cent of Ant Financial, a move seen as paving the way for an initial public offering (IPO) of the payments unit.
In India, Ant Financial has also invested in digital wallets major Paytm and its affiliate businesses.
Also Read:
<a href="https://www.dealstreetasia.com/stories/alibaba-leads-300-million-funding-indias-top-online-grocer-91659/">Alibaba leads $300m funding in India’s online grocer Bigbasket</a>
<a style="color: #ff0000;" href="https://www.dealstreetasia.com/stories/brokerage-firms-divided-zomatos-valuation-90983/" target="_blank" rel="noopener">Brokerage firms Nomura, HSBC, Morgan Stanley divided on Zomato’s valuation</a>

The latest funding will help Zomato compete more aggressively with rivals in food delivery including Naspers-backed Swiggy.

India: Alibaba's Ant Financial picks up stake in Zomato for $200m

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India: Alibaba's Ant Financial picks up stake in Zomato for $200m

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