Food delivery venture Zomato Pvt Ltd, which runs one of the two top food ordering apps in India, has raised $250 million (Rs 1,800 crore) in fresh funding in what is believed to be a pre-IPO round.
The company has raised the money from five investors in a round led by Kora Management. Kora put $115 million. Fidelity Management & Research Co ($55 million), Tiger Global ($50 million), Bow Wave ($20 million) and Dragoneer ($10 million) brought the rest.
Dragoneer is a new investor while the others are existing backers.
The transactions were sealed at a post-money valuation of $5.4 billion for Zomato. This translates into a 33% upside on the pre-money valuation and tops up the balance sheet with more dough after a huge staggered round last year.
In December, Zomato had completed a staggered fundraise adding $660 million (Rs 4,851 crore) at a post-money valuation of $3.9 billion.
That round included Tiger Global and Kora as new names in the cap table. Singapore state investment arm Temasek, Luxor, D1 Capital, Baillie Gifford, Mirae Asset, Steadview Capital, Ant Financial, Sequoia Capital, Vy Capital, Nexus Venture Partners, Blume Ventures and Info Edge are among the other shareholders of the company.
On a fully converted and diluted basis, Mumbai-listed Info Edge’s effective stake in Zomato stands at 18.4%. This would be worth just about $1 billion, or Rs 7,250 crore.
Created in 2008, Zomato first started as a restaurant review platform before spreading its wings to delivery and other related businesses.
For the financial year ended March 2020 Zomato’s revenue more than doubled to $394 million while loss rose about 6% to $293 million.
One year ago, it had bought ride-hailing company Uber’s food delivery business in India in an all-stock transaction. The deal gave Uber just under 10% stake in Zomato. Zomato competes mainly with Swiggy.