Ahead of its IPO next year, Zomato raises $660 million
Zomato has raised $660 million as part of its primary financing round, giving the Gurugram-based food tech unicorn a valuation of $3.9 billion, the company's founder and CEO, Deepinder Goyal, said on Twitter. The fundraise saw 10 new investors join Zomato, including marquee names like Tiger Global Management, Baillie Gifford, Luxor Capital, Mirae Asset, Kora Capital, Steadview, and D1 Capital.
Alongside the primary fundraise, Zomato is also closing a $140 million secondary financing round. As a part of this transaction, the company has already provided liquidity worth $30 million to its former employees for their contribution in building the brand. The current valuation of $3.9 billion makes Zomato the most-valued food tech unicorn in India, eclipsing arch-rival Swiggy, which is valued at $3.6 billion.
"Food delivery in India is rapidly coming out of COVID-19 shadows. December 2020 is expected to be the highest ever GMV month in our history. We are now clocking ~25% higher GMV than our previous peaks in February 2020," Goyal said. "The tailwinds for food delivery businesses are clearly visible, and we believe that the growth of the sector will accelerate post vaccine."
According to Mint, Zomato is likely to make some acquisitions in the logistics space in a bid to support its food-delivery platform. The report notes that the start-up has been raising funds "to bolster its cash reserves as it looks to build a war-chest for future acquisitions" as well as "to fight any possible price wars" from competitors in the coming months.
Zomato is planning to go for an initial public offering (IPO) in the first half of 2021, making it India's first-ever unicorn start-up to launch on the stock market. The company has appointed Kotak Mahindra Bank as its lead merchant bank for the proposed IPO.
