Zomato pockets $100-mn cheque from Tiger Global

By TEAM VCC

  • 10 Sep 2020
Credit: VCCircle

Food delivery company Zomato Media Pvt. Ltd has raised $100 million (Rs 760 crore) from US-based investment firm Tiger Global Management LLC as it continues to secure capital to ride out the coronavirus crisis.

The transaction has been sealed at a post-money valuation of $3.3 billion for Zomato, the food delivery company’s shareholder Info Edge (India) Ltd said in a stock-exchange filing.

Info Edge said that Zomato 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 has 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. According to VCCEdge, the data research arm of Mosaic Digital, Zomato reported consolidated net sales of Rs 1,312.58 crore for the financial year ended March 2019 and posted a loss of Rs 1,001.11 core.

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.