Online food order delivery firm Zomato is reportedly raising funds in another round and the investors in this round may bring in $62.26 million (Rs 440.86 crore). The key investor in this round is said to be Delivery Hero, a German firm based out of Berlin.
This has been reported by VCCircle based on the company‚Äôs filings with the Ministry of Corporate Affairs as mandated. These filings indicate that the German investor will pick up 2.26% stake in Zomato, for an investment of Rs 350 crore. Interestingly, Delivery Hero is the same company that sold FoodPanda to Ola last year.
The South African company Naspers is a common investor in both Delivery Hero and in Zomato. Naspers is one of the largest investors in the German food delivery company and had taken a major part of the $1 billion funding generated by Zomato‚Äôs rival Swiggy in India here.
The remaining amounts making up the full Rs 440 crore will be from Shunwei Capital and Saturn Shine Ltd.
One of Zomato‚Äôs arms, Zomato Media too, had raised an amount of $39.7 million just last month. There has been no confirmation from the company itself on whether this fund raising from the German company is part of a larger fund-raising plan it had.
Meanwhile, there are rumors that Zomato is also negotiating for selling off its business in UAE to the German company Delivery Hero. The price being quoted for this $200-250 million.
All these developments are being reported at a time when there have been talks of Zomato raising a large $1 billion funding and its valuation bumped to $3 billion.
But the financial side, though the company claims it may turn profitable by 2021, only the last financial year saw its losses soar seven time from around Rs 106 crore the previous year to Rs 766 crore. The company has been burning cash to stay competitive in its fight with Swiggy.