The Indian Wire » Startups » Zomato to raise $600 million in new funding round from Ant Financial : Sources

Zomato to raise $600 million in new funding round from Ant Financial : Sources

Zomato, a food aggregator, is reportedly, finalising a $600 million (approx INR 42,55 crore) funding round led by Ant Financial, reported Inc42, citing various sources.

The sources claimed that the round is speculated to see participation from Temasek as well as other existing investors and a few hedge funds may invest about $150 Mn-$200 Mn as well in the unicorn foodtech giant.

While, a spokesperson for Zomato, further said, “We are raising a round to fuel our ambitions in food delivery, dining out and sustainability. However, at this stage we cannot disclose any further details.”

Sources also speculated that after the current funding round, if happens, will grow Zomato’s valuation at $3 billion from its previous valuation of $2 billion.

Also read: Zomato reports $205 million revenue for first half of FY2019-20; burn rate reduces by 60%

Zomato is an Indian restaurant search and discovery service provider, founded in 2008 by Deepinder Goyal and Pankaj Chaddah.

It currently operates in 24 countries. It provides information and reviews of restaurants, including images of menus where the restaurant does not have its own website and also online delivery.

The sources also mentioned that there has been a 40 per cent decline in Zomato’s EBITDA (earnings before interest, tax, depreciation and amortization) loss from March to September 2019.

Besides, the company has also pointed out that its monthly burn rate, which measures the rate at which a company is losing money, is down by 60 per cent.

Adding on, other foodtech players, operating under the similar domain include Swiggy, Uber Eats, Food Panda, among more.

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