Companies

Zomato to raise $150 million from Ant Financial

Reuters BENGALURU | Updated on January 10, 2020 Published on January 10, 2020

Zomato is raising $150 million from investor Ant Financial, an Alibaba affiliate, at a valuation of $3 billion for the food delivery start-up.

Zomato's top shareholder Info Edge (India) Ltd said in a filing on Friday 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 last year.

The fund infusion comes as Zomato pushes for a bigger market share in the highly competitive Indian food delivery space in a race with rivals such as Tencent-backed Swiggy and Uber's UberEats.

The capital is part of a larger $500 million fund raising that is likely to close in the next two months, the Economic Times newspaper reported citing a person with knowledge of the matter.

Zomato confirmed that the $150 million fundraise was part of a larger round, but did not give further details.

The Gurugram-based restaurant aggregator recorded a loss of $294 million in the year ending March, compared with a loss of $12 million a year earlier as it burnt more cash in its Indian delivery business to grab new customers, unaudited figures from its annual report showed.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on January 10, 2020
This article is closed for comments.
Please Email the Editor