[Funding] Zomato raises $146 million as part of Series J funding as it preps for IPO

Zomato is set to raise around $146 million (Rs 1,085 crore) as part of its Series J funding round from a clutch of investors. This will include Mirae Asset, Steadview Capital, Luxor Capital Group, Lugard Road Capital and ASP India. The data comes from the regulatory filings from the business intelligence platform Tofler showed

Last we reported, Zomato is gearing up for a public listing in the first half of 2021. For this, it is looking to hire bankers. Also, it has brought in Cyril Amarchand Mangaldas and Indus Law as legal advisors. Zomato has also appointed Kotak Mahindra Bank as the lead merchant bank for the proposed IPO.

About the fund

Pacific Horizon Investment Trust had previously invested $5 million in Zomato in March this year. In the ongoing round Mirae Asset-Naver Asia Growth Fund, Steadview Capital, hedge-fund Luxor Capital Partners, Lugard Road Capital and ASP India LP will pump in the fresh capital over the coming weeks.

The total size of the investment round is pegged at about $600 million. The bulk of the capital will be used to fund “future M&A, and fighting off any mischief or price wars from our competition in various areas of our business”, founder & CEO Deepinder Goyal had said in an internal mail to employees earlier.

In a bid to bolster its cash reserves, Zomato has been on a fundraising spree over the past months. It has garnered a little more than $270 million so far in 2020 from key investors. This included Tiger Global Management, Temasek, through MacRitchie Investments, and Ant Financial. It raised $102.5 Mn from Tiger Global Management and $62 Mn funding from Temasek through MacRitchie Investments.

With this investment, it would allot 34,873 Series J Preference Shares at an issue price of Rs 300,235 to above investors to raise another Rs 1,047 crore. While this tranche only involves fresh allotment; the company is also in advanced conversation to raise over $50 million in secondary capital.

Read more: Startups with upcoming IPOs in the next 2-3 years