Food delivery segment in India continues to flourish with the likes of Swiggy and Zomato involved in a competitive tussle. After Swiggy with a $1 billion infusion from Naspers tried to run away with the deal, Zomato as per the reports plans to up the ante as well.
As per the reports, the Gurgaon headquartered Zomato is now looking to raise $500 million-$1 billion in fresh funding. China-based equity firm Primavera Capital and Alibaba's payment arms Ant Financial are supposedly going to lead the round.
Primavera is expected to infuse about $200 Mn (INR 1392.5 Cr) in the potential round while the remaining amount will come from Ant Financial. As per the details, one of the Zomato representative commenting on the development said, “There is a new round that we are talking to potential investors (including Ant Financial) for our new fundraising. This will be at a premium to the last round as the company has more than doubled in size since the last round was finalized.”
Notably, Zomato was looking to raise the about $400 million in the month of December itself. However, as Swiggy bagged the $1 billion financing from Naspers, Zomato did not want to lag too far behind. Zomato didn’t expect Swiggy to fetch the $1 billion which they got. As per the report, Zomato expected that Swiggy will bring about $600 million in the round.
Notably, UberEats and Ola-owned Foodpanda too are in the competition but the neck-to-neck between the two rivals is not going to end anytime soon as million continue to pour in both the firms.