Companies

Government’s new FDI checks may impact Chinese company Ant’s investment in Zomato: Report

Hemani Sheth Mumbai | Updated on June 24, 2020 Published on June 24, 2020

Zomato is evaluating the need for approval for receiving $100 million capital from China’s Ant FInancial that had acquired a stake in the company earlier this year as per reports.

The food-delivery platform’s key investor InfoEdge on Tuesday said that it is yet to receive $100 million out of the $150 million to be invested by the Alibaba affiliate, Times of India reported.

The company is evaluating if this capital needs government approval in light on investment curbs as announced by the government. The Indian government earlier this month had announced that foreign direct investments (FDI) from countries that shared a land border with India would go through only after its approval.

The anti-China sentiments in terms of the investment have been strengthened amid the recent border tension between the two countries.

While the company is evaluating the status of the remaining amount of funding, it has also received investment interest from inbound investors, it had said as per the report.

Zomato had raised $150 million from Ant Financial in January at a valuation of $3 billion, Reuters had reported.

Zomato's top shareholder Info Edge (India) Ltd in a fling had said that after the funding its stake will drop to about 25.13 per cent. It had a 26.38 per cent stake, as of March 2019.

The remaining capital from Ant financial was expected to come from a unicorn fund set up by the company as per the TOI report.

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Published on June 24, 2020
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