Home / Companies / News /  Zomato raises $660 million at $3.9 billion valuation, sets sights on IPO by June

Gurugram-based food tech unicorn Zomato has completed its primary fundraise worth $660 million, giving the company a valuation of $3.9 billion, as the firm set its sights on an initial share sale in the first half of 2021.

The fundraise saw 10 new investors join Zomato including Tiger Global Management, Baillie Gifford, Luxor Capital, Kora Capital, Steadview, D1 Capital and Mirae Asset, Zomato founder and chief executive Deepinder Goyal said on Twitter.

Zomato is also raising $140 million as a part of a secondary transaction, Goyal said. As a part of this final fundraise before its IPO, Zomato has provided liquidity worth $30 million to its former employees.

The startup has been on a fund-raising spree to bolster its cash reserves as it looks to build a war-chest for future acquisitions as well as to fight any possible price wars in the coming months.

Mint had earlier reported that Zomato was aiming to make acquisitions in the logistics space.

The current valuation makes Zomato the most-valued food tech unicorn in the Indian startup ecosystem, surpassing competitor Swiggy, which is valued at $3.6 billion.

In November, Zomato had made takeaway service commissions free on its platform to boost business for offline restaurants. The company also claimed that the gross merchandise value run rate of food orders on its platform was 110% of that in the months before the pandemic. Last month, Zomato also said that it has delivered more than 130 million orders since the start of the first lockdown imposed in March to contain the spread of coronavirus.

As a build up to the IPO, Zomato has also been making changes to its leadership. Towards the end of October, Zomato had elevated Akshant Goyal as its new chief financial officer (CFO). Goyal was earlier heading corporate development for the company and has been associated with the food delivery company for the last four years. Akriti Chopra, who was the earlier CFO of the company, will handle people development in the organization.

Mint had earlier reported that Zomato has appointed Kotak Mahindra Bank as its lead merchant bank for the proposed IPO.

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