Listed foodtech major Zomato has launched Zomato Wings, a platform to connect investors with restaurants.
In a blog, Deepinder Goyal, the CEO of the online food delivery unicorn said, “ We hope to build the go-to platform for venture capital firms, angel investors, family offices, etc. that are looking to make private investments in restaurants and cloud-kitchens.”
Goyal, however, made it clear that Zomato will not be investing in any of its partner restaurants and its role would be limited to being a facilitator of fundraising for restaurants.
“We are mindful that by owning an equity stake in one brand, we may raise some concern among other brands. Again, we do not want to compete with restaurants, and want to remain a fair and neutral platform for all restaurants,” he said.
Observing that it is not easy for restaurants in India to raise funding through growth-focused equity investors, the blog cited data from Tracxn and said that in the last three years, only about 25 restaurants and cloud-kitchens saw Series A or larger equity funding rounds.
“There are thousands of budding restaurants that may not have the expertise or focus to fundraise at the right time from the right investors. This is where we want to help,” Goyal added.
Earlier this month the publicly listed company announced that it has sold its fitness facility arm Fitso to fitness startup Curefit for $50 Mn. In the cross-selling, Zomato also infused an additional $50 Mn in cash in Curefit.
This way, it has acquired a total shareholding of 6.4% worth $100 Mn in the fitness startup.
In January 2021, Zomato had acquired full-stack sports facilities provider and discovery startup Fitso in a deal reportedly worth INR 80 Cr–INR 100 Cr.
For the quarter ended September, the online food aggregator unicorn nearly doubled its consolidated net loss for the quarter ended September to INR 434.9 Cr from INR 229.8 Cr in the same quarter of FY21.
The revenue from operations more than doubled during the period under review to INR 1,024.2 Cr, from INR 426 Cr in the second quarter of FY21 on the back of growth in the food delivery service.
While announcing its financial results for Q2FY22, the company said that it will focus on divesting or shutting down any businesses which aren’t likely to drive exponential value for the shareholders in the long term. Additionally, it will look at investing in its core food businesses and the ecosystem around it and building the hyperlocal ecommerce ecosystem.
Shares of Zomato on the BSE ended at INR 152.60, higher by INR 3.65 or 2.45% from its previous close. Its market capitalisation currently stands at INR 1.20 Lakh Cr.