Indian food delivery startup Zomato has raised $160 million from American investment firm Tiger Global Management and Singapore-based Temasek's MacRitchie Investments at a valuation of $3.3 billion. The Gurugram-based company secured funds at a time when the industry has been badly impacted by coronavirus pandemic-led lockdown.
In a regulatory filing, Info Edge (India) confirmed that its portfolio company Zomato has closed primary fundraise of $100 million from Tiger Global Management, LLC (through its investment vehicle, Internet Fund VI Pte. Ltd). The foodtech unicorn has also raised $60 million from MacRitchie Investments, an indirect wholly-owned subsidiary of Temasek Holdings Limited, job portal Naukri's parent said in a filing to the Bombay Stock Exchange.
On a fully converted and diluted basis, Info Edge's effective stake in Zomato stands at 22.2 per cent.
Zomato has allotted 25,313 class J4 preference shares to Tiger Global's Internet Fund IV Pte. Ltd at an issue price of Rs 3,00,235 per share.
The transaction valued Zomato at a post-money valuation of $3.3 billion, close to its rival Swiggy which was last valued at $3.6 billion after it raised $156 million from Naspers and others.
In an email to employees, Zomato's founder and CEO Deepinder Goyal on Thursday reportedly said that the company will go for public listing of shares by mid-2021.
"We have raised a lot of money, and today, our cash in the bank ($250 million) is more than ever in our history. Tiger Global, Temasek, Baillie Gifford and Ant Financial have already participated in our current round, and there are more big names joining the round - we estimate that our current round will end up with us at $600 million in the bank very soon," Goyal told employees.
For the financial year 2019-20, Zomato's revenue doubled to $394 million from $192 million in the previous fiscal, while its loss widened to $293 million from $277 million in 2018-19. In the June quarter, the company reported revenue of $41 million on a loss of $12 million, dented by coronavius-led nationwide lockdown.
By Chitranjan Kumar