Foodtech major Zomato has raised Rs 760 crore or $ 102.5 million in its Series J funding round from Tiger Global Management. This tranche of financing came after the company closed a $ 62 million fund from Temasek MacRitchie Investments.
New funding for the Gurugram-based company would help it accelerate its growth and tackle rival Swiggy, who has deep pockets. Importantly, this is the first bet by the US-based hedge fund in India’s online food ordering space.
Zomato has made an allotment of 25,313 Class J preferred shares at an issue price of Rs 3.09,235 per share to increase the amount, regulatory records show.
After the award, Tiger Global would have a 3.01% stake in the company. Fintrackr’s Calculations estimate that Zomato would be valued at $ 3.4 billion, post-money. The company I was valued at $ 3,250 million when it raised $ 5 million from the Scotland-based Pacific Horizon Investment Trust in April earlier this year.
So far, Zomato has raised about $ 167 million in external financing in 2020. Prior to the Temasek investment in August, the food technology company had secured $ 5 million from the Pacific Horizon Investment Trust in March 2020.
Infusions of MacRitchie Investments and Tiger Global also demonstrate strong investor confidence in Zomato’s business. The new tranches would provide a much-needed lead to Zomato which has been unable to raise funds from one of its biggest backers, Ant Financial, due to a ban on foreign direct investment under the automatic route from countries that share a border with India.
A recent medium report He also suggested that Zomato would raise around $ 250 million from Temasek, Tiger Global, and Kora Capital. While Temasek and Tiger Global have played their game, Kora Capital’s likely $ 100 million may come soon.
While the full participation pattern will be released after the Series J round coof award, Enter He had figured out the main individual stakeholders and their value. Zomato co-founder Pankaj Chaddah and CEO, Deepinder Goyal is the company’s largest individual shareholder, controlling a 7.7% stake worth nearly $ 245.2 million. The other co-founder, Pankaj Chaddah, who moved from Zomato in 2018 to launch MindHouse, has a 1.75% stake in Zomato according to the latest list of shareholders released by the company.
