INDIA – Indian food delivery and restaurant service Zomato has raised US$210 million from Alibaba’s payment arm, Ant Financial as it strives for a bigger market share in the delivery space.
According to the filings by Info Edge, Zomato’s parent company, the funding raises Zomato’s valuation from US$1.1 billion to around US$2 billion, giving Ant Financial more than 10% stake.
Info Edge’s ownership will drop from 30.91% to 27.68%, according to reports.
“We would like to bring to your knowledge that Zomato has signed a definitive agreement to undertake a primary fundraise of approximately US$210 million from Alipay Singapore (Ant Financial),” read an Info Edge filing.
Zomato provides delivery services and in-depth reviews on over 1.4 million restaurants across 23 countries, allowing users to search for and discover restaurants to eat out at or make online orders.
Ant Financial recently secured the right to become the largest shareholder in Zomato after investing US$200 million in the company in February this year.
The investment included buying 6.66% of Zomato’s stake for US$50 million from Indian e-commerce and online classifieds company Info Edge India Ltd, and a definitive agreement to invest approximately US$150 million in Zomato.
This will be followed by a restructuring of its operations in Australia, New Zealand and Southeast Asia on approval of the right.
Zomato raised US$37 million of investment from Sequoia Capital and previous investors in 2013 and two years later, the company received US$60 million of financing from investors led by Temasek Holdings and Vy Capital.
Zomato said it hit the 21 million monthly order run rate in India in September, when it reached highest daily order of 700,000 orders each day of the week, claiming to be the market leader in the food delivery space in India.
Besides taking a stake in Loyal Hospitality to expand its cloud kitchen operations in Bengaluru, Zomato acquired TongueStun Food, a Bengaluru-based caterers and restaurants startup.
Swiggy, Zomato’s rival received US$210 million from its newest Series G funding, led by DST Global and South Africa’s Internet and entertainment group Naspers, pushing its valuation to US$1.2 billion.