Food delivery platform Zomato has raised $250 million in a fresh round of funding from existing and new investors. This comes ahead of its proposed initial public offering (IPO).
In a regulatory filing, InfoEdge, which is one of the early investors, said that Zomato has closed a primary fundraise of $250 million from five different investors. These include: Kora Management - $115 million; Fidelity Management & Research Company - $55 million; Tiger Global Management - $50 million; Bow Wave Capital Management - $20 million; and Dragoneer Investment Group - $10 million.
Post these transactions, the Gurugram-based company is now valued at $5.4 billion. InfoEdge’s effective stake in Zomato stands at 18.4% on a fully converted and diluted basis, the filing further stated.
In December 2020, Zomato had raised $660 million in a primary fundraise, giving the company a valuation of $3.9 billion. This made it the most-valued foodtech startup in the Indian startup ecosystem, leaving behind rival Swiggy which was valued at $3.6 billion.
Prior to this, in November, Zomato had raised $195 million in funding from six investors including Luxor and Kora, taking its valuation to $3.6 billion.
In the same month, the startup had also made takeaway service commissions free on its platform to give an impetus for offline restaurants. In a sign of recovery, the company claimed that the gross merchandise value run rate of food orders on its platform was 110% of that in the months before the pandemic.
Zomato has been on a fund-raising spree of late in order to strengthen its cash reserves keeping in mind future acquisitions, as well as to prepare for any price wars that may unfold in the coming months. It was earlier reported that Zomato was targeting acquisitions in the logistics space.