Zomato secures $62 mn in fresh funding from Temasek

By Narinder Kapur

  • 02 Sep 2020
Credit: VCCircle

Food delivery company Zomato Media Pvt. Ltd has raised $62 million (Rs 454.34 crore at current exchange rates) in funding from a unit of Singapore state investment arm Temasek, according to multiple media reports.

The Gurugram-based firm has issued 15,188 shares to Temasek affiliate MacRitchie Investments Pte Ltd for around Rs 2.93 lakh per share, Mint reported, citing regulatory filings sourced from company research platform Tofler.

As per the report, Zomato raised this capital at a valuation of $3.25 billion. This 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.

VCCircle has reached out to Zomato and Temasek on the details of this fundraise and will update this report accordingly.

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.

In June, media reports suggested that Temasek—which first invested l in Zomato five years ago—was in discussions to invest up to $100 million (around Rs 755 crore) in Zomato as part of a larger investment round. 

Then, in August, another set of reports suggested that the company was looking to raise as much as $200 million (around Rs 1,500 crore) from the United States-based Tiger Global. These reports said that Zomato and Tiger Global had launched preliminary talks for the investment and that due diligence was being conducted.

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.

Investors in the company include Info Edge (India) Ltd, 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.