With the latest fundings, the Gurugram-based firm, Zomato (1) has scooped 216 million USD in the past two and half months across three infusions. The company has allotted 12,656 Series J5-1 CCPS to secure the consideration from Kora Investments. Post allotment, Kora holds a 1.48% stake in the company.
Reports suggest that Zomato would raise more capital from Tiger Global and others in the current funding round. The ongoing fundraise could be the last private funding for Zomato before its public listing. It has recently claimed that it is planning for an IPO in 2021.
Post money, the valuation of Zomato has reached 3.5 billion USD or 25,675 Crore USD, according to the estimates. Last money, the company received 102 million USD or 760 crore INR from Tiger Global.
Zomato to Double its Growth and Embark Towards Profitability with Latest Tranche
According to the reports, Kora would invest 100 million USD in Zomato, and the New York-based investment company is likely to pour more capital into the company in the upcoming weeks.
Notably, Zomato had also allowed more than 12,000 shares in employee’s ESOP trust. Consequently, the ESOP scheme would bring 25 million USD or 184.2 Crore INR to the company. The fresh funding came when the food tech major announced that it had reached its pre-COVID peak.
As per Deepinder Goyal, the chief executive of Zomato, the company had delivered over 92 million orders since March 23. The online food delivery industry was severely impacted during the two-month lockdown period, and the company had taken several tough decisions. It includes layoff, salary deduction to manage the difficult situation.
The fresh tranche would help the company to double its growth and embark on its journey towards profitability. Goyal further added that the firm has no plans about utilizing the proceeds. He also indicated that Zomato would secure 600 million USD in the ongoing round for M&A and fight the price war against the competitors.