[Funding] Zomato raises $250 Mn; now valued at around $5.4 Bn

FoodTech Zomato has raised $250 million and now has a valuation of around $5.4 bn. The startup had only in December closed a $660 million Series J financing round. Zomato’s new round has primarily seen participation from the same set of investors who backed it in December - Kora, Fidelity and Tiger Global. According to media reports, the investors contributed in the following manner - Kora ($115 million); Fidelity ($55 million); Tiger Global ($50 million); Bow Wave ($20 million) and Dragoneer ($10 million). In December, the startup valued at around $3.9 billion. After this round, Zomato’s early investor Info Edge has an 18.4% stake in the startup.

Zomato co-founder and CEO Deepinder Goyal tweeted in December that the food delivery market was rapidly coming out of COVID-19 shadows. “December 2020 is expected to be the highest ever GMV month in our history. We are now clocking ~25% higher GMV than our previous peaks in February 2020. I am supremely excited about what lies ahead and the impact that we will create for our customers, delivery partners and restaurant partners,” he said.

About Zomato IPO

In an email to employees in September last year, Goyal said Zomato was working on its IPO for “sometime in the first half” of 2021 and was raising money to build a war-chest for “future M&A, and fighting off any mischief or price wars from our competition in various areas of our business.”

Earlier this month, Zomato increased its paid-up capital has increased from INR 535 Cr to INR 1,448 Cr. It now preps for raising funds. Zomato’s initial public offering (IPO), which will go live in 2022, is in the works, the company states. Zomato plans to list itself in India, however, it could also look at listing overseas. Meanwhile, media reports also suggest that Zomato is looking at a $6 Bn-$8 Bn valuations through the IPO.