India: Zomato lands $52m funding from US-based Kora Investments

Photo: Mint

Foodtech unicorn Zomato, which is in talks to raise almost $600 million, as part of its ongoing funding round, has added $52 million (almost ₹380 crores) to its coffered from US-based Kora Investments.

Kora is expected to make another large investment in Zomato in the coming months, a person aware of the talks told Mint.

Zomato Pvt. Ltd. has allotted a total of 12,656 Class J5 preferential dividend shares to Kora Investment I LLC, at an issue price of ₹3,00,235, for more than 1% stake in the food tech major, according to regulatory filings accessed through Tofler.

This comes in the backdrop of the company shoring up capital, as it looks to go public by mid-2021, in what could be a turning point for Indian unicorns.

With this fundraise, Zomato has collected more than $270 million in funding, just this year. In September, it had closed its $62 million funding from MacRitchie Investments, a unit of Singapore state investment arm, Temasek, and also raised $103 million from US-based hedge fund Tiger Global.

In January, the company had announced a funding of $150 million from China’s ANT Financial, of which it has only received $50 million, while in March it had raised $5 million from Pacific Horizon Investment Trust, which is managed by UK-based Baillie Gifford & Co. Ltd.

The news of Kora’s $52 million investment was first reported by Entrackr.

The Gurugram-based startup is currently valued at $3.3 billion.

Zomato doubled its revenue to $394 million in 2019-20, even as its losses rose marginally to $293 million from $277 million in 2018-19.

In comparison, Zomato’s rival Swiggy had garnered $156 million in the first half of this year, from Naspers and a group of other investors, valuing the startup at $3.6 billion.

Earlier this week, Zomato in a blog post, said the food delivery in India was registering 85% of pre-covid gross merchandise value (GMV), adding that the sector has “recovered to (and even grown beyond) pre-COVID levels in a number of large pockets of the country”.

The pandemic and the ensuing lockdown had hit the food industry hard, with many restaurants and eateries forced to shut shop.

Now food delivery firms like Zomato and Swiggy have pinned their of hope of recovery on the ongoing Indian Premier League (IPL) season, as well as the upcoming festival season, during which they expect delivery volumes to gather steam.

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.