Ant-Backed India Food Delivery Startup Zomato Plans 2021 IPO

Ant-Backed India Food Delivery Startup Zomato Plans 2021 IPO

For Zomato, the new round comes amid uncertainty surrounding the India strategy of its prominent backer - China's Ant Financial, which holds 25% in Zomato and had committed to investing $150 million in January. It should be noted that Zomato's value will cross $3.5 billion in the new round if it gets successful.

The company in March 2020 also raised $5 million from Pacific Horizon Investment Trust, managed by UK-based Baillie Gifford & Co. Ltd.

Goyal also said that the company had facilitated the sale of Esops for ex-employees worth $30 million (225 crore) to investors.

"Zomato Pvt Ltd has closed a primary fund raise of United States dollars 100 million from Tiger Global Management, LLC (through its investment vehicle Internet Fund VI Pte Ltd and/or any of its affiliates), and USD 60 million from MacRitchie Investments Pte Ltd, an indirect wholly-owned subsidiary of Temasek Holdings and/or any of its affiliates", Info Edge said in a regulatory filing. It is the fund's first bet in India's food-delivery sector.

According to previous reports, the Indian food delivery platform is looking to raise a total of $250 million in the current round, for which it was also talking to Kora Capital.

What slowdown? Amazon seeks to hire 33000 people
Amazon has already hired more than 175,000 people to staff up during the pandemic to help meet surging demand for delivery. Department of Labor, said that Amazon is different from other companies in that it's thinking about its future workforce.

He further wrote, "Our fiance/legal teams are working hard to take us to IPO sometime in the first half of next year".

In addition to this, Goyal said that they have raised money from Tiger Global, Temasek, Baillie Gifford and Ant Financial in their current round, and more names will be joining. The company said it does not have any immediate plan for the cash it has raised. "We are treating this cash as a "war-chest" for future M&A, and fighting off any mischief or price wars from our competition in various areas of our business", he said.

With regard to current employees not being able to sell their stock options, he said, "Our IPO is around the corner and waiting a little longer will result in significantly more value creation for all of us". In the past, Zomato and Prosus Ventures-backed Swiggy have held discussions for a merger, but talks have not progressed. Zomato IPO plans also come to life because the firm recovered 80 percent of pre-COVID sales and returns level.

Earlier in July, Zomato said that its revenues doubled to $394 million, although it recorded a loss of $293 million, for the fiscal year 2019-20.

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.

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