Funding Funding updates

Food Tycoon Zomato raises another $62 mn from Temasek

Another good news for Gurugram based Indian company reportedly raised a fresh fund of $ 62 mn i.e. around Rs. 454 crores) from Singapore state investment unit called Temasek. In turn, Zomato has allocated 15188 shares to Temasek subsidiary company named MacRitchie Investments Pte Ltd, which works out roughly to Rs. 2.93 lac per share as per media reports.

While we are very much aware of the fact that the lockdown and the period following proved out to be a little painful for Zomato and the road to recovery is also painful. At such crucial times, receiving such a huge amount of funding will be really helpful and beneficial for the food tech company.

It is known that Zomato company has raised this capital at the valuation of $3.25 billion.  Prior to this, another food-tech company had raised $150 million i.e. approximately Rs. 1067 Crore from its existing investor company Ant Financial at a valuation of $3 billion.

Zomato has constantly been raising funds from overseas investment agencies and as per reports, it had raised $5 million from British investor Baillie Gifford owned Pacific horizon investment Trust in march 2020. In June also Temasek had invested $100 million i.e. Rs. 755 crores with zomato Then in August, Zomato was planning to raise $ 200 million from US-based Tiger Global as per media reports. This was a journey of expansion plans for Zomato seem to be quite ambitious for time to come. In fact, the company was initiated in the year 2008 as a company reviewing the performance of different restaurants.

Later on, they added it for delivering food to clients along with much fanfare and successful activities of promotional programs.  In the month of January 2020, the company took over the food delivery business of Uber Technologies for operations in India. This deal benefitted Uber to hold a stake of 9.99% in Zomato. As per Mr Deepender Goyal, founder of Zomato, this step shall further strengthen its standing in this competitive and fast-growing market.