SUMMARY
Zomato is reportedly down-valued at $3 Mn
It may raise $100 Mn each from Tiger Global and Kora Capital
Zomato CEO had announced that it will raise $600 Mn in January 2020
Gurugram-based food aggregator business Zomato has raised INR 456 Cr ($62 Mn) funding from Singapore-based state investment arm Temasek through MacRitchie Investments, as per regulatory filings sourced from business intelligence firm Tofler.
Though the filings did not indicate the valuation of the transaction, an Economic Times report citing sources highlighted that Zomato was down-valued at $3 Bn for this round. Meanwhile, several media reports have added that the foodtech giant may also raise up to $100 Mn each from Tiger Global Management and Kora Capital at the same valuation.
In June, Inc42 had reported that the attempts to raise funds from Temasek as a rescue act, after the company’s plans of raising funds from Alibaba Group Holding affiliate ANT Group were delayed because of simmering anti-China sentiment and changed foreign direct investment (FDI) rules.
ANT Group has committed to invest $150 Mn in Zomato but has only transferred $50 Mn. The investment firm was looking to transfer the rest of the amount through its $1 Bn unicorn fund. By the time, the China-based investment firm set up the fund, the Indian government revised FDI guidelines.
ANT Group has been an investor in Zomato since 2018. It had invested $210 Mn in the company for 14.7% stake and became the online food delivery company’s largest investor. Then in November 2018, ANT Group also raised his stake to 23%. Currently, it owns 25% stake in Zomato.
Meanwhile, Temasek started investing in Zomato in 2015. So far, it has infused close to $41 Mn (INR 310 Cr) and holds a 3% stake in the Gurugram-based food delivery business. Its latest investment in Zomato is a part of the larger $500 Mn round.
In December 2019, Zomato CEO and cofounder Deepinder Goyal had announced that the company would raise $500 Mn to $600 Mn funding by January 2020. Within a few days, Zomato announced the $150 Mn investment from ANT Financial, after which came the $5 Mn investment from British investment manager Baillie Gifford’s Pacific Horizon Investment Trust. Zomato had a post-money valuation of $3.25 Bn for the deal.
Meanwhile, rival Swiggy raised INR 264 Cr in its Series I funding round led by Chinese internet giant Tencent in April 2020 at $3.6 Bn valuation. Ark Impact Investments, Korea Investment Partners, and MACM India Growth Fund also participated in the round.
