Zomato in talks to raise up to $1 billion in new financing round

Online food delivery platform Zomato is in talks to raise between $500 million and $1 billion in a new financing round from Chinese private equity major Primavera Capital and Alibaba’s payments affiliate Ant Financial, along with other investors.

Last month, Zomato’s rival Swiggy raised $1 billion funds, which valued the startup at $3.3 billion.

One of the sources familiar with the development said, "Primavera may invest about $200 million in the upcoming round while the remaining amount could come from Ant Financial. The company is also talking to other investors to syndicate the round."

A Zomato representative reportedly stated, "There is a new round that we are talking to potential investors (including Ant Financial) for our new fundraise. This will be at a premium to the last round as the company has more than doubled in size since the last round was finalised."

A person privy to the discussions added, "The easy option for Zomato is to raise the new funds from Ant Financial considering they are now the most influential, deep-pocketed investor on their capitalisation or cap table. But they have been engaging with a set of new investors and looking to close the deal over the next few months."