Indian food tech unicorn Zomato raises $660m at $3.9b valuation

Photo: Mint

Gurugram-based food tech unicorn Zomato has completed its primary fundraise worth $660 million, giving the company a valuation of $3.9 billion, as the firm set its sights on an initial share sale in the first half of 2021.

The fundraise saw 10 new investors join Zomato including Tiger Global Management, Baillie Gifford, Luxor Capital, Kora Capital, Steadview, D1 Capital and Mirae Asset, Zomato founder and chief executive Deepinder Goyal said on Twitter.

Zomato is also raising $140 million as a part of a secondary transaction, Goyal said. As a part of this final fundraise before its IPO, Zomato has provided liquidity worth $30 million to its former employees.

The startup has been on a fund-raising spree to bolster its cash reserves as it looks to build a war-chest for future acquisitions as well as to fight any possible price wars in the coming months.

The current valuation makes Zomato the most-valued food tech unicorn in the Indian startup ecosystem, surpassing competitor Swiggy, which is valued at $3.6 billion.

In November, Zomato had made takeaway service commissions free on its platform to boost business for offline restaurants. The company also claimed that the gross merchandise value run rate of food orders on its platform was 110% of that in the months before the pandemic. Last month, Zomato also said that it has delivered more than 130 million orders since the start of the first lockdown imposed in March to contain the spread of coronavirus.

As a build up to the IPO, Zomato has also been making changes to its leadership. Towards the end of October, Zomato had elevated Akshant Goyal as its new chief financial officer (CFO). Goyal was earlier heading corporate development for the company and has been associated with the food delivery company for the last four years. Akriti Chopra, who was the earlier CFO of the company, will handle people development in the organization.

This article was first published on livemint.com.

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.