Indian foodtech unicorn Zomato raises another $250m ahead of IPO

Photo: Mint

Foodtech unicorn Zomato has raised an additional $250 million from existing and new investors ahead of its proposed initial public offering (IPO) in June this year.

Zomato completed the primary pre-IPO fundraise at a total valuation of $5.4 billion, a sharp rise from the $3.9 billion in December.

The funds have been raised by Kora Management LP, which led the round, infusing close to $115 million, along with Fidelity Management and Research, which infused $55 million and Tiger Global Management, which put in $50 million. New investors Bow Wave Capital and Dragoneer Investment Group also invested close to $20 million and $10 million in the company, respectively.

After this round, Zomato’s early investor Info Edge’s stake in the startup stands at 18.4%. Info Edge also owns a stake in insurance aggregator PolicyBazaar, which is also finalizing investment bankers to prepare for a potential IPO.

The latest fund infusion in Zomato is in addition to the $660 million primary fundraise undertaken by the firm last year from 10 new investors, including Baillie Gifford, Luxor Capital, Steadview, D1 Capital and Mirae Asset.

In the past year, the startup has been on a fundraising spree to bolster its cash reserves as it looks to build a war chest for acquisitions as well as to fight any possible price wars in the future.

Mint had earlier reported that Zomato was aiming to make acquisitions in the logistics space.

In a recent call to discuss its December quarter results, Info Edge said the board of Zomato will take the final decision on the IPO and, so far, there was nothing to report on that front.

Zomato is also raising $140 million as part of a secondary transaction, the company’s founder and chief executive Deepinder Goyal said on Twitter in December.

The secondary deal is expected to give a partial exit to Chinese investors in its portfolio Ant Group and Sunlight Fund, a person aware of the discussion told Mint.

“Food delivery in India is rapidly coming out of covid-19 shadows. December 2020 is expected to be the highest ever GMV (gross merchandise value) month in our history. We are now clocking 25% higher GMV than our previous peaks in February 2020,” Goyal tweeted in December, while announcing the company’s previous fundraise.

Zomato said it hit a record GMV on 31 December, with orders on the platform peaking at 4,254 orders a minute in the evening. The GMV rose 60% from the previous year.

This article was first published on livemint.com.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • 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. 
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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.