New Delhi: Foodtech major Zomato has raised Rs 760 crore or $102.5 million in its Series J funding round from Tiger Global Management.
This funding tranche has come after the company closed a $62 million fund from Temasek’s MacRitchie Investments, as per Entrackr. The fresh funds for the Gurugram-based company would help it in ramping up its growth and tackle its deep-pocketed rival Swiggy. Importantly, this is the maiden bet by the US-based hedge fund in Indian online food ordering space.
Zomato has made an allotment of 25,313 Class J preference shares at an issue price of Rs 3,09,235 per share to raise the amount, shows regulatory filings.
Post allotment, Tiger Global would command a 3.01% stake in the company. Fintrackr’s calculations estimate that Zomato would be valued at $3.4 billion, post-money. The company was valued at $3.25 billion when it raised $5 million from Scotland-based Pacific Horizon Investment Trust in April earlier this year.
So far, Zomato has picked up around $167 million in external funding in 2020. Prior to Temasek’s investment in August, the food-tech firm had scored $5 million from Pacific Horizon Investment Trust in March 2020.
The infusions from MacRitchie Investments and Tiger Global also demonstrates the strong confidence of investors in Zomato’s business. The fresh tranches would provide a muchneeded runway to Zomato that has been unable to raise funds from one of its largest backers Ant Financial due to a ban on foreign direct investment under the automatic route from countries that share a border with India.