As Zomato prepares to go public next year, from last year’s financing round, the Indian food delivery startup has raised $660 million.
As a group of companies like Tiger Global, D1 Capital, Kora, Fidelity (FMR), Luxor, Mirae participated in the Series J round, which gave $3.9 billion to Zomato as a post-money valuation. Before this, Zomato disclosed a fundraise of approximately $212 million in the Series J round from Tiger Global, Ant Financial, Temasek, and Baillie Gifford.
The co-founder and chief executive of Zomato, Deepinder Goyal, has said that the company is about to close a $140 million secondary transaction. “As a part of this transaction, we have already provided liquidity worth $30m to our ex-employees”, he had tweeted.
Due to several obstacles including the current pandemic, the closing of $600 million that was anticipated to happen this January has got delayed. Apart from this, Ant Financial, which was committed to investing $150 million in this round, delivered just a third of it, as disclosed earlier this year by Info Edge- Zomato’s investor.
The company, which had acquired Uber’s food delivery business in India now competes with Swiggy backed by Prosus Ventures. As a third player, though it just offers food delivery service only in some parts of Bangalore, Amazon has emerged in the market.
According to analysts at Bernstein, though India’s food delivery market is at stake now, it is projected to reach $12 billion by 2022. Among the three players, Zomato leads the market with 50% of its share, they had written.
The Gurgaon- headquartered startup has eliminated hundreds of jobs this year to navigate the pandemic and to improve its finances that were significantly hurt. Goyal said that the food delivery market is rapidly worming its way out of the decline; the highest ever GMV month is expected to be December 2020. And that the market is growing ~25% higher GMV than the previous peaks seen in February 2020. He also added, “I am supremely excited about what lies ahead and the impact that we will create for our customers, delivery partners, and restaurant partners.”
As we can see the growth plan, we can still see the light at the end of the tunnel. Though there were proceedings that were stalled due to COVID-19, it had aggravated the growth of the Zomato app, thereby making it the leader of the market.
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