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Business News/ Companies / Start-ups/  Zomato raises $660 mn at a valuation of $3.9 bn
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Zomato raises $660 mn at a valuation of $3.9 bn

'We are in the process of closing a $140-mn secondary transaction. As part of this transaction, we have already provided liquidity worth $30 mn to our ex-employees,' says Zomato CEO Deepinder Goyal
  • The 10 investors from whom Zomato raised the funds include the likes of Tiger Global, Luxor, Steadview
  • 'December 2020 is expected to be the highest ever GMV month in our history,' says Zomato CEOPremium
    'December 2020 is expected to be the highest ever GMV month in our history,' says Zomato CEO

    Food delivery platform Zomato on Friday announced closing of a $660-million primary financing round at a post-money valuation of $3.9 billion.

    In a series of tweets, CEO Deepinder Goyal said "marquee global investors share our enthusiasm about the future of this business".

    The 10 investors from whom Zomato raised the funds are Tiger Global, Kora, Luxor, Fidelity (FMR), D1 Capital, Baillie Gifford, Mirae, and Steadview.

    "Food delivery in India is rapidly coming out of COVID-19 shadows. December 2020 is expected to be the highest ever GMV month in our history. We are now clocking ~25% higher GMV than our previous peaks in February 2020," said Goyal.

    He said that the tailwinds for food delivery businesses are clearly visible, and that Zomato believes that the growth of the sector will accelerate post vaccine.

    "On top of this $660m, we are in the process of closing a $140m secondary transaction. As part of this transaction, we have already provided liquidity worth $30m to our ex-employees," said Goyal on Twitter.

    "I am grateful for their contribution in building @zomato and am glad that we created some wealth for these super amazing people. A number of these ex-zomans are busy working on their own startups and will not need to raise seed capital from external investors. I am supremely excited about what lies ahead and the impact that we will create for our customers, delivery partners, and restaurant partners," Goyal further tweeted.

    Earlier this year, Zomato acquired the Indian business of Uber Eats in an all-stock deal that will give the ride hailing company 9.99 per cent stake in Zomato.

    Interestingly, in May this year, Amazon India threw its hat in the ring and announced the launch of its food delivery operations in select parts of Bengaluru.

    Zomato and Prosus-backed Swiggy had seen their business being impacted by the COVID-19-induced lockdown. During this time, Zomato and Swiggy ventured into the area of grocery delivery. With the easing of lockdown, the companies have been seeing demand returning on these platforms.


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    Published: 18 Dec 2020, 09:53 PM IST
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