Food delivery startup Zomato is set to close $500 million worth of investment which will take the value of the company to $5.5 billion (approx).
In Zomato's fresh round of funding, its existing investors like, Tiger Global, Kora Investments, Steadview, Fidelity, Bow Wave, Vy Capital have infused $250 million, The Economic Times reported.
Additionally, the remaining amount has been raised by way of secondary sale of shares by Chinese investors Ant Group and Sunlight Fund. Dragoneer Investment Group is one of the new entrants that have also participated in the latest round of funding in the Gurugram-based restaurant aggregator.
Zomato has been on a fund-raising spree to bolster its cash reserve as the firm set its sights on an IPO.
Zomato is planning to launch an IPO in the first-half of 2021 by valuing the company at $6-8 billion in the public market, according to media reports. The food delivery startup has appointed Goldman Sachs, Kotak Mahindra Bank, Morgan Stanley and Credit Suisse to run its IPO process.
In December 2020, Zomato had raised $660 million with ten new investors, which included Tiger Global, Kora, Luxor, Fidelity (FMR), D1 Capital, Baillie Gifford, Mirae, Steadview and two others.
The food-tech unicorn has recorded a 98.4 per cent surge in its collections during the fiscal ended March 2020. Its revenue from operations grew from Rs 1,312.6 crore in FY19 to nearly Rs 2,605 crore in FY20. However, Zomato's losses have widened to Rs 2,385.6 crore for the fiscal ended March 31, 2020. In FY19, the company's losses were at Rs 1,001 crore.