Zomato in talks to raise $100 million in fresh funding following the acquisition of US-based Urbanspoon for about $50 million, reports Reuters.
“The acquisition of Urbanspoon, which marks Zomato's entry into the United States, Canada and Australia, will result in its presence in 22 countries, covering more than one million restaurants,” Zomato told Reuters.
"It's an all cash deal. We pretty much had to spend all our last round of funding on this and it's sort of a big deal for us," said, Zomato Chief Executive Deepinder Goyal.
In the last couple of years, foreign investors like Japan's SoftBank Corp and Temasek Holdings have invested billions in internet and mobile-based companies. These funds have been utilised by some of the technology start-ups to acquire local peers.
Founded in 2008, Zomato is backed by Sequoia Capital. Zomato experienced a very successful year 2014, which raised $60 million from Sequoia Capital, Info Edge, and Vy Capital in November 2014, bringing the total investment into the company to $113 million to date.“The startup is likely to be valued at about $1 billion after completing the fresh round of investment,” Goyal said.