Indian food delivery giant Zomato secures $660 million

Zomato has raised $660 million in a financing round — Series J — that it kicked off last year as the Indian food delivery startup prepares to go public next year.

The Indian startup said Tiger Global, Kora, Luxor, Fidelity (FMR), D1 Capital, Baillie Gifford, Mirae, and Steadview participated in the round, which gives Zomato a post-money valuation of $3.9 billion. Zomato had previously disclosed fundraise of about $212 million as part of Series J round from Ant Financial, Tiger Global, Baillie Gifford, and Temasek.

Deepinder Goyal, the co-founder and chief executive of Zomato, said the 12-year-old startup is also in the process of closing a $140 million secondary transaction. “As part of this transaction, we have already provided liquidity worth $30m to our ex-employees,” he tweeted.

The startup originally anticipated to close a round of about $600 million by January this year, but several obstacles including the global pandemic delayed the fundraise effort. Ant Financial, which had originally committed to invest $150 million only delivered a third of it, Zomato’s investor Info Edge disclosed earlier this year.

The Gurgaon-headquartered startup, which acquired the Indian food delivery business of Uber early this year, competes with Prosus Ventures-backed Swiggy  in India. A third player, Amazon, has also emerged in the market, though it currently offers its food delivery service in only parts of Bangalore.

More to follow…

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