From availing period leave to the women employees to raising IPO in 2021, the food delivery app Zomato seems to have been shelling great news for quite sometime.
Also, now the news of the hour is that the foodtech unicorn has been in the top charts of funding news of having raised $103 million from New York- based investment firm Tiger Global Management as part of its ongoing Series-J financing, according to regulatory filings.
The company in March 2020 also raised $5 million from Pacific Horizon Investment Trust, managed by UK-based Baillie Gifford & Co. Ltd. This is in addition to the $62 million it raised from sovereign fund Temasek earlier in September.
Deepinder Goyal, Founder and CEO, also addressed to his employees in a mail that “We have raised a lot of money, and today, our cash in the bank (~$250m) is more than ever in our history. Tiger Global, Temasek, Baillie Gifford and Ant Financial have already participated in our current round, and there are more big names joining the round – we estimate that our current round will end up with us at $600m in the bank very soon.”
Additionally the management stated that will be using this funding, as cash reserves to fight price competition in the market, as well as look at potential acquisitions in the space, which will boost its food delivery capabilities.
In its latest report, Zomato estimated that business for the food delivery industry will come back to pre-covid levels in the next 2-3 months, with 70 per cent of restaurants on its platform delivering food at present.
Zomato has made an allotment of 25,313 Class J preference shares at an issue price of Rs 3,09,235 per share to raise the amount, shows regulatory filings.
Post allotment, Tiger Global would command a 3.01% stake in the company.
Earlier in July, the foodtech unicorn claimed that its revenues had doubled to $394 million, although it recorded a loss of $293 million, for the fiscal year 2019-20. In FY19, the food aggregator unicorn reported a revenue of $192 million and a loss of $277 million.