India: Zomato said to be valued at $3.25b after new fundraising

Photo: Mint

Ant Financial-backed food ordering and delivery company Zomato has raised $5 million as part of its ongoing Series J financing round from an affiliate of British investment manager Baillie Gifford.

The latest infusion has valued Zomato at about $3.25 billion, reported Entrackr. Its arch-rival, Swiggy, was valued at $3.4 billion when it raised $113 million in a funding round led by its largest existing investor Naspers this February.

According to the company’s filings with the Registrar of Companies (RoC) sourced by Paper.vc, Zomato has allotted 1,177 Series J2 compulsorily convertible cumulative preference shares (CCCPS) at $4,245.56 apiece to Pacific Horizon Investment Trust, a fund managed by Baillie Gifford.

Pacific Horizon Investment Trust invests in stocks across the Asia Pacific, excluding Japan, and in the Indian subcontinent. As of January 31, 2020, the firm has allocated 8.8% of its total assets in India, according to its website. Some of its investments in India include Info Edge, Reliance Industries, and ICICI Lombard.

In January, Zomato Media Pvt Ltd had entered into an agreement to raise up to $150 million from existing investor Ant Financial. The Gurugram-based company raised the primary capital at a pre-money valuation of $3 billion.

Both Zomato and Swiggy are going through turbulent times with the COVID-19 crisis deepening in India. According to a report in The Economic Times last Saturday, online food delivery orders for Zomato and Swiggy have dropped 70% in the last 10 days to under 1 million a day.

Owing to growing coronavirus cases, the Indian government had imposed a 21-day nationwide lockdown starting March 25, post which, most hotels and restaurants had temporarily shut operations. The food delivery orders had declined 20 per cent even before the lockdown, according to RedSeer Consulting.

To make up for this loss, Zomato has started delivering groceries online under its new initiative ‘Zomato Market’, in a bid to help those seeking delivery of essential food items at their doorsteps.

 

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.