Food delivery company Zomato Media Pvt. Ltd has completed a staggered fundraise that added $660 million (Rs 4,851 crore) to its coffers at a post money valuation of $3.9 billion, its co-founder and chief executive Deepinder Goyal, tweeted on Friday.
He said the firm has added ten investors to its cap table including Tiger Global, Kora, Luxor, Fidelity, D1 Capital, Baillie Gifford, Mirae and Steadview.
In addition, the firm is in the process of seeing a secondary transaction worth $140 million and as part of it Zomato has already provided a window for some of its former employees to sell shares worth $30 million that were allotted from the stock option pool. A secondary transaction is where one investor buys existing shares from other shareholders and the money doesn’t go into the company.
Separately, Info Edge (India) Ltd, an early investor in the firm disclosed, Zomato has closed primary fundraise of $253.4 million from four different investors- Kora ($50.7 million), Tiger Global ($101.3 million), D1 Capital ($50.7 million) and Fidelity ($50.7 million).
On a fully converted and diluted basis, Info Edge’s effective stake in Zomato stands at 19.3%, which would be worth $752 million or Rs 5,532 crore.
In September, Info Edge had disclosed that Zomato has raised $100 million from Tiger Global at a post-money valuation of $3.3 billion and has also raised $60 million from a unit of Singapore state investment arm Temasek.
After the fundraise from Tiger Global and Temasek, Info Edge’s stake in Zomato had come down to 22.2%.
The fundraising exercise comes after the food-tech firm in January raised $150 million (around Rs 1,067 crore) from existing investor Ant Financial at a pre-money valuation of $3 billion.
In March, Zomato raised $5 million from British investment manager Baillie Gifford’s Pacific Horizon Investment Trust as part of its Series J round of funding, according to filings with the RoC.
Zomato was set up in 2008 and initially began as a restaurant review platform before expanding to delivery, promotional programmes, and other associated segments of the food-tech ecosystem.
Other investors in the company include Sequoia Capital, Vy Capital, Nexus Venture Partners and Blume Ventures. For the financial year ended March 2020 Zomato saw its revenue more than double to $394 million, while loss rose about 6% to $293 million.
In January this year, the company said that it had agreed to acquire ride-hailing company Uber Technologies Inc.'s food delivery business in India in an all-stock transaction. The deal gave Uber a 9.99% stake in Zomato.
At the time, Zomato founder and chief executive officer Deepinder Goyal said the acquisition would strengthen the firm’s position in the food delivery market. Zomato competes mainly with Swiggy.
