Zomato Raises $210 Million From Alibaba’s Payment Arm Alipay

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Zomato

Gurgaon headquartered restaurant discovery and food delivery startup Zomato has confirmed a fresh investment of about $210 million (886 crores) from Chinese e-commerce giant Alibaba’s online payment arm Alipay Singapore.

Info Edge, one of the existing backers of Zomato in the regulatory filing revealed the fresh infusion of capital from Alibaba which results in a reduced stake of the firm which earlier owned about 30% stake in the firm. Talking about the same, Info Edge in the filing said, In this regard, we would like to bring to your knowledge that Zomato has signed a definitive agreement to undertake a primary fundraiser of approximately USD 210 million from Alipay Singapore Holding Pte. Ltd. (which is an existing shareholder of Zomato) and/or any of its affiliates and upon the closing of this fundraiser, our shareholding in Zomato stands reduced to about 27.68% on fully converted & diluted basis."

Interestingly, the news of this financing comes a few weeks after Zomato had acquired Bangalore-based catering company TongueStun which operates in top six cities in the country that includes Bengaluru, Chennai, Hyderabad, Pune, Mumbai, and Gurugram/ Noida. The Chinese giant had infused about $150 million (1,109 crores) earlier in the month of March at a valuation of more than $1 billion. Now, the fresh investment comes reportedly at the valuation of $2 billion.

Started in 2008, Zomato had claimed to touch more than 21 million monthly orders in September. It said that it was touching order volume of 700,000 orders every day of the week, becoming the market leader in the segment. Last Friday, founder and CEO Deepinder Goyal through a blog post said, “At the beginning of 2018, we were at 3.5 million orders a month. With 21 million orders per month, as far as we know, we are now the market leader in the food ordering space in India."

Zomato rival Swiggy on the other hand has been aggressive too as it was in talks with Tencent and Naspers where it was looking to raised $500-$700 in investment.

 

Image Courtesy : cnbc

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