Zomato, the online food delivery and restaurant aggregator Indian startup, has raised $150 million at $3 billion evaluation from its long term investor Ant financial which is an affiliate of Chinese based Alibaba.
As confirmed by Zomato CEO, Deepinder Goyal, the investment is a part of a larger $500mn investment round. Ant Financial has been an investor of Zomato since 2018. This round of investment is expected to be closed in two months.
Ant Financial had invested $250mn for Zomato at 14.7% stake in 2018 and had become the largest investor for the company. The stake was later raised to 23% in November 2018 and now they are valuing the online Food delivery giant at 3 Billion in the latest round.
A three-year agreement was signed by Zomato which gave Ant financial the highest say among all other stakeholders in the operations of the company and also give it’s parent company Alibaba to subscribe to acquired shares in Zomato.
The CEO and Co-founder, Deepinder Goyal had announced in December 2019 that they will be raising $500 million to $600 million by January 2020. the media has been speculating since long that Zomato was in discussion with Ant financial for an amount of $500 to $550 million.
Ant Financial was looking to raise 1bn in the Southeast Asian payments and fintech startups and this investment came up at the same time. Few high valuation startups from India are also included in the fund among startups from other countries. This is to gain a stronghold in digital economies. Ant Financial has applied for a banking license in Singapore.
In the case of Zomato, it is said that Uber is also planning to invest around $100 to $200 million in the online food delivery giant. Earlier, they had released the news about Zomato buying UberEats which was under loss in India. This $100bn to $200bn investment will come under the combined entity of Zomato and UberEats.
Zomato was founded in 2008 by Goyal and Pankaj Chaddah and has grown to be one of the biggest food delivery companies in the world. They have their branches in 11 different countries in the world with over 48mn customers as announced by Goyal in 2019 and 23mn customers from this 43mn are from India and the rest 25mn is from other countries.
According to Goyal the company has reduced its revenue loss to 70% in the past year and is looking forward to making profits by 2020.