Zomato Raises Fresh Funding of $210 Mn from Alibaba’s Ant Financials

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Gurgaon-based restaurant discovery and food-delivery app, Zomato, has raised a fresh capital of $210 million from Alibaba’s payment affiliate Ant Financial, which has already made an investment of $200 million in the company in February this year. The investment will be for a little over 10% stake in Zomato.

In May this year, IndianWeb2 first reported about the possibility of this funding round of Zomato. Zomato was reportedly in talks to raise another fresh $200 million from Alibaba after its February funding round.

In a stock exchange filing on Friday, Zomato’s oldest backer Info Edge disclosed that it’s ownership in the company will fall from 30.91% to 27.68% as a result of the fresh capital infusion from Alipay Singapore Holding Pte. Ltd or other affiliates of Ant Financial.

 

“We would like to bring to your knowledge that Zomato has signed a definitive agreement to undertake a primary fund raise of approximately USD 210 million from Alipay Singapore,” said Info Edge in the filing.

The latest funding comes within a week after it was reported that Zomato is in process of launching its own digital payments and mobile wallet solution in order to prevent its users going out of its ecosystem while making payments online

Post this latest funding, Zomato is valued at around $2 billion, up from its valuation of $1.5 billion in its last fund-raise.

With this funding, Ant Financial, which already held 20-22% stake in Zomato, has now become the largest shareholder in the company securing largest share close to Info Edge’s 27.68% stake post-dilution.

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So far, Zomato has raised a total of $651 million in funding over 11 rounds including this one.

The fundraising for Zomato is likely to continue as its rival Swiggy is in talks to $500-700 million from Alibaba rival and WeChat application owner Tencent besides existing backer Naspers at a valuation of $2.5-3 billion, as ET reported last month.

Zomato has also held talks Ctrip, a largest online travel portal of China, to invest in the possible round of about $400 million. Both Zomato and its largest competitor Swiggy have also held talks with Softbank Vision Fund.

Source: IndianWeb2

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