Zomato now worth USD 5.4 billion after raising USD 250 million in funds
Indian food delivery startup Zomato has reportedly raised USD 250 million in a funding round which was led by its existing investors Fidelity Investments Inc., Kora Management LP, and Tiger Global. The fresh funds have allowed the company to reach a valuation of USD 5.4 billion.
Sources with knowledge of the matter stated that Tiger Global invested around USD 115 million during Zomato’s funding round while Kora Management and Dragoneer allocated approximately USD 115 million and USD 10 million respectively.
Bow Wave Capital Management also invested around USD 20 million with Fidelity closing the round with a USD 55 million investment. Following the successful funding round, Zomato intends to go public this year.
If the IPO goes as planned, it will be the first among Indian modern consumer internet startups, and the first internet IPO since firms like MakeMyTrip and Info Edge, owner of Naukri.com, sources claimed.
It is worth mentioning that Zomato had declared a USD 660 million fundraising and priced the company at USD 3.9 billion earlier in December. This fundraising involved participation from ten investors such as Kora, D1 Finance, Baillie Gifford, Tiger Global, Luxor, Fidelity (FMR), Steadview, and Mirae.
Experts cite that investors are lately looking forward to Zomato’s prospects following the successful IPO of DoorDash Inc., an American food delivery service. In fact, the SoftBank-backed DoorDash is currently appraised at USD 34.2 billion.
After a few difficult months last year, Zomato and competitor Swiggy benefited from a rebound in the online food ordering industry due to the nation-wide lockdown in India imposed to monitor the spread of the COVID-19 pandemic.
As per credible sources, Swiggy is also in talks to conclude a funding round of USD 700-USD 800 million which is likely to be led by the Qatar Investment Authority along with participation from Falcon Edge, the and GIC of Singapore.
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