Zomato, the foodtech unicorn, has raised another $250 million from both existing and new investors before a potential initial public offering (IPO) later this year, Mint reported.
Zomato’s current valuation at the primary pre-IPO phase is $5.4 billion, which is a large increase from its December value of $3.9 billion, the report stated.
Kora Management led the round with $115 million, and Fidelity Management and Research put in $55 million while Tiger Global Management put in $50 million, according to the report. There were also new investors, including Bow Wave Capital, which contributed around $20 million, and Dragoneer Investment Group, which put in about $10 million.
This latest investment comes after a $660 million infusion from last year from 10 new investors, including Baillie Gifford, Luxor Capital, Steadview, D1 Capital and Mirae Asset, the report stated.
Zomato for the past year has been raising money in order to boost its cash reserves, looking to boost acquisitions and fight any price wars that might come about in the future, according to the report. The company had been previously looking at acquisition potential in the logistics space.
In addition, Zomato was reported to be raising $140 million in a secondary transaction, according to a tweet from Founder and CEO Deepinder Goyal in December, the report stated. The transaction is meant to give a partial exit to Chinese investors in Zomato’s portfolio, Ant Group and Sunlight Fund.
In December, Zomato partnered with FinTech firm InCred. Zomato Chief Sales Officer Rakesh Ranjan said India’s food delivery sector isn’t close to what it was before the pandemic. The partnership with InCred — one among many for Zomato — will help restaurant partners with easy and risk-free credit options. InCred’s services aid companies with loans for small- to medium-sized business (SMB) loans in channel finance, term debt and capital debt.
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