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.