This is the first fundraise by Zomato in this calendar year as it prepares to file for an initial public offering later in the year. The Gurgaon-based company closed a $660 million financial round backed by 10 new investors at a post-money valuation of $3.9 billion last year.
“The immediate opportunity for food delivery companies is the 110-120 million online shopper base; these customers are already aware of transacting online, making online payments,” the analysts said.Zomato has raised a fresh $250 million in funding from a clutch of investors led by Kora Management at a post-money valuation of $5.4 billion, shareholder Info Edge said in a late evening stock exchange filing on Monday.
This is the first fundraise by Zomato in this calendar year as it prepares to file for an initial public offering later in the year. The Gurgaon-based company closed a $660 million financial round backed by 10 new investors at a post-money valuation of $3.9 billion last year.
In the latest funding round, Kora Management infused $115 million in the company. Fidelity Management & Research Company and Tiger Global Management backed the firm with investments of $55 million and $50 million respectively. Bow Wave Capital Management and Dragoneer Investment Group collectively invested $30 million.
Info Edge said its effective stake in Zomato now stands at 18.4%.
Analysts at Kotak Institutional Equities estimate the online food delivery industry gross merchandise value (GMV) to increase to $9 billion in FY25 and further to $27 billion by FY30 from a projected $3 billion in FY20 on the back of the Covid-led growth. The segment, which has about 15 million transacting users at present, is expected to widen its customer base to as many as 80 million going ahead.
“The immediate opportunity for food delivery companies is the 110-120 million online shopper base; these customers are already aware of transacting online, making online payments,” the analysts said.
Zomato claims to have clocked a nearly 60% higher GMV on New Year’s Eve 2020 over the previous year. To put this in perspective, it translates into a GMV of `75 crore in a single day. Peak orders per minute (OPM) touched a rate of 4,254 on the day. In a report published in July last year, Zomato had said it estimated its monthly burn rate to “land under $1 million”. “While Covid-19 has impacted the size of our business, it has accelerated our journey to profitability,” the company had said.
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