Foodtech unicorn Zomato has secured $150 million in fresh funding from existing investor Ant Financial, a subsidiary of China-based giant Alibaba. The present round of funding is a part of Zomato’s larger $500 million fund raise.
With the latest fundraise, the food delivery platform has received $840 million in funding to date. Post this funding, the total valuation of CEO Deepinder Goyal-led company stands at around $3 billion.
The latest fundraise comes at a time when Zomato is reportedly targeting to acquire UberEats' India business for around $400 million.
The company said, “This is to inform you that Zomato Media Private Ltd. has signed a definitive agreement to undertake a primary fund raise of up to USD 150 million from Antfin Singapore Holding Pte. Ltd., which is an existing shareholder of Zomato, and/or any of its affiliates.”
“The transaction values Zomato at a pre-money valuation of $3 billion,” Zomato added.
In 2018, Zomato secured $210 million from Ant Financial, which received a 14.7% stake, and later raised the stake to 23%.
Other investors in Zomato are Info Edge India, Vy Capital, Sequoia Capital and Singapore-based Temasek.
Presently, the food delivery platform is delivering more than 1.3 million orders a day from 150,000 restaurants across India at over 10 orders per restaurant per day.
Why is food delivery trending?
In India, food trends are continuously changing with the change in eating habits of the ever-demanding consumers and the new concepts heating up the million-dollar food service industry.
From going to a restaurant over dinner or lunch, people today look out for delivery and getting their favourite food delivered to their doorstep. Similarly, rather than going to the grocery store to buy raw materials first and then cook them, customers can push a button and have their meal delivered in around 30 minutes from some of their favourite restaurants.
Seeking this opportunity not only the aggregators or delivery players who started this trend are betting big on this model but restaurants and food players are also eyeing this as the next ground to invest in.
Pros of food delivery
Placing orders online or on such apps proved beneficial for everyone. There are special discounts for new customers or discounts at various restaurants, always going on. A restaurant finder app can easily help you avail such discounts.
Brands and outlets have also started tying up with food delivery and hyperlocal mobile as getting listed on third-party Aggregators has proven very fruitful for them.
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