India's Zomato taps Ant Financial again for $150m

Ant Financial, the financial services affiliate of China’s Alibaba Group, invested $210 million in Zomato in 2018. At the time, the business was reportedly worth $2 billion. The Chinese group has now re-upped, according to a disclosure by Info Edge, an existing investor in the company. Info Edge said its shareholding has consequently dropped from 27.7% to 25.13%.

Zomato earns revenue via commissions on total orders, membership programs, and advertisements. It claims to operate in 500 cities, processing over 1.3 million orders daily. The company has plans to grow a network of cloud kitchens to speed up its core service offering and target smaller cities.

Last year, HSBC Global Research analysis found that more than 70% of Zomato's revenue comes from its food delivery business line. HSBC valued the company at $3.6 billion.

It has now received over $950 million in total funding from the likes of Vy Capital, Singapore’s Temasek Holdings, Shunwei Capital and Sequoia Capital India, according to AVCJ Research. In recent months, Indian media have reported talks are underway for Zomato to acquire Uber's India food delivery business.

The company's main domestic rival is Swiggy, with the latter counting Naspers, Accel, Bessemer Venture Partners, DST Global, and Meituan-Dianping among its investors. Swiggy has raised over $1.5 billion in funding over 10 rounds.

At an industry forum in December, Zomato founder Deepinder Goyal said the company plans to raise up to $600 million this month.

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• Topics
• South Asia
• Technology
• Expansion
• Consumer
• India
• Ant Financial
• Growth capital
• TMT