Indian food ordering and delivery platform Zomato has raised about $102 million (Rs760 crore) in its ongoing Series J funding round from US investment firm Tiger Global Management. News of the two being in funding talks had surfaced in August this year.
According to the company’s latest regulatory filings sourced by business signals platform Paper.vc, it has allotted 25,313 Class J4 cumulative compulsorily convertible preference shares (CCCPS) at an issue price of Rs 3,00,235 per share to Internet Fund VI Pte Ltd, an affiliate of Tiger Global.
Zomato will use the funds to grow its business, the filing said. According to a report in Mint, the company is also planning to go public by mid-next year.
The Gurugram-based foodtech company had closed $62 million (Rs 456 crore) from Singapore’s state investment arm Temasek Holdings in the first tranche earlier this month. The round had reportedly valued Zomato at about $3.25 billion, unchanged from March when it had raised $5 million (Rs38 crore) from Pacific Horizon Investment Trust, which is managed by UK-based Baillie Gifford & Co. Ltd.
The development comes a day after DealStreetAsia reported that Zomato is also in preliminary talks to raise funds from venture capital fund Mirae Asset-Naver Asia Growth Fund, which is also an investor in ride-hailing company Ola, and grocery e-tailer BigBasket.
Zomato had started looking for new sources of capital after it failed to raise the promised $150 million funding from existing investor Ant Group, an affiliate of China’s Alibaba Group Holdings earlier this year. The investment had hit a hurdle after India amended its foreign direct investment (FDI) norms following escalating border tensions with China in April. By that time, Zomato had only received $50 million of the total $150 million from Ant Group.
The funding from Tiger Global has come as a big breather for Zomato, which needed money to run operations smoothly at a time when the food delivery business has been hit hard due to the COVID-19 pandemic.
According to previous reports, the Indian food delivery platform is looking to raise a total of $250 million in the current round, for which it was also talking to Kora Capital.
The company has raised about $1.1 billion in funding to date. It counts Info Edge, Sequoia Capital India, and Vy Capital among its list of backers.
Meanwhile, Tiger Global raised $3.75 billion for its 12th venture fund earlier this year. The firm has made more than 200 investments in 30 countries. In India, Tiger Global ramped up its investments significantly after exiting Flipkart in August 2018, ending a three-year hiatus. The investment firm made over 20 investments last year alone.
Other prominent startups that the firm invested in earlier this year include edtech unicorn Byju’s, edtech company InterviewBit, healthtech platform Innovaccer, and wealth management platform INDwealth.