Beijing time on the morning of January 10, according tomedia reports, a person familiar with the matter said that Zomato recently has received an existing investor Ant Financial’s $150 million investment, after the investment of the online food delivery and restaurant review platform valuation reached 3 billion U.S. dollars. Previously, Zomato was valued at $2 billion. Another person familiar with the matter said the $150m investment was part of the company’s $500m financing round, which could be completed within the next two months.
Ant Financial is a subsidiary of Chinese internet giant Alibaba. In 2018, Ant Financial acquired a 14.7 percent stake in Zomato, according to regulatory filings. In November of that year, Ant Financial’s stake in the company increased to 23%. Meanwhile, ride-sharing company Uber is interested in investing in Zomato. It is understood that if all the terms are agreed, the $200m deal could be completed soon, but it remains a question of whether Uber will press ahead with the investment. In mid-December,media first reported that Uber could invest in Zomato.
Deepinder Goyal, co-founder and chief executive of Zomato, has yet to respond to emails seeking details of the financing.
The latest financing will help Zomato and rival Swiggy. The latter, which was financed by $1 billion in 2017, was led by existing investors Naspers, Chinese companies Tencent, Qualton Capital and Wellington Asset Management.
Zomato’s revenue was Rs13.97 billion in fiscal 2019, with a loss of Rs.10.01 billion, according to regulatory filings. Of these, most of the losses are spent on advertising.