Zomato Raises $250 Mn Led By Kora Management At $5.4 Bn Valuation

Zomato has raised $250 Mn (over INR 1,800 Cr) in fresh funding from existing investors Tiger Global, Kora and others, which brings the valuation of the food delivery unicorn to over $5.4 Bn .

“Zomato Pvt. Ltd. has closed a primary fundraise of $250 Mn from five different investors…The transactions valued Zomato at a post-money valuation of $5.4 Bn (exchange rate of Rs 73.5 per U.S. dollar),” Zomato investor Info Edge said in a regulatory filing.

On a fully converted and diluted basis, the Sanjeev Bikhchandani-led company’s stake in Zomato stands at 18.4%.

In the latest round, $ 115 Mn has been invested by Kora Management, $55 Mn from funds associated with Fidelity, $50 Mn from Tiger Global. Besides this, Bow Wave Capital has invested $20 Mn, while Dragoneer  invested $10 Mn.

Earlier this month, Zomato increased its paid-up capital has increased from INR 535 Cr to INR 1,448 Cr in preparation for raising funds. Zomato’s initial public offering (IPO), which is expected to be launched in 2022, is said to be in the works. Zomato plans to list itself in India, however, it could also look at listing overseas. Meanwhile, media reports also suggest that Zomato is looking at a $6 Bn-$8 Bn valuation through the IPO.

The latest round brings the total funding for Zomato to over $2.1 Bn. In December, Zomato had closed a $660 Mn round with 10 new investors joining the company’s cap table, including Tiger Global, Kora Capital, Luxor, Fidelity (FMR), D1 Capital, Baillie Gifford, Mirae, and Steadview.

Zomato saw its loss increase 161% to INR 2,451 Cr in the fiscal year ending March 31, 2020, from INR 940 Cr in 2019. In FY20, Zomato saw its revenue increase 84% year-on-year to INR 2,486 Cr. The filings mention that the primary revenue source for the company is through ad sales, online ordering and Zomato Gold (now called Zomato Pro) business segments. Revenue from operations stood at INR 2336 Cr, while other income came in at nearly INR 150 Cr for the year.