Tiger, Temasek commit $160m to India's Zomato
Tiger Global Management and Temasek Holdings have contributed $160 million to an ongoing Series J round for India-based food delivery company Zomato.
Tiger invested $60 million and Temasek provided $100 million, giving the company a post-money $3.3 billion, according to a filing. It comes eight months after a $150 million investment from Ant Financial and the acquisition of rival Uber Eats India for an undisclosed sum.
The investment bolsters the company’s war chest as part of preparations for an IPO as early as the first half of next year, Livemint reported, citing an email from CEO Deepinder Goyal to employees. This effort is expected to include further M&A activity.
“We have raised a lot of money, and today, our cash in the bank ($250m) is more than ever in our history. Tiger Global, Temasek, Baillie Gifford and Ant Financial have already participated in our current round, and there are more big names joining the round,” the email was quoted as saying. “[W]e estimate that our current round will end up with us at $600m in the bank very soon.”
Zomato serves about 55 million users in 24 countries and claims to facilitate some 28 million orders a month. Revenue is generated via commissions on orders, membership programs, and advertisements. It had a network of 150,000 restaurants as of October. There are plans to grow the network by targeting smaller cities and expand cloud kitchen operations to speed up the core service offering.
The company has raised more than $1 billion to date, according to AVCJ Research, with previous investors also including Sequoia Capital India, Shunwei Capital, Vy Capital, Glad Brook Capital Partners, and German counterpart Delivery Hero. Info Edge India, the holding company for local jobs portal Naukri, has participated in several rounds and holds an approximately 22% interest following the latest investment.
Uber acquired a 10% stake in Zomato following the acquisition of Uber Eats India. Goyal said at the time that the transaction established his company as the “undisputed” market leader in Indian food delivery. The deal extended a consolidation process in the segment that saw Delivery Hero sell its local Foodpanda brand to ride-hailing operator Ola in 2017, as well as Ola’s exit from the food delivery space in 2019.
Swiggy, which has raised $1.6 billion, is Zomato’s main competitor. Its funding includes a $1 billion Series H in 2018 led by Naspers. Prosus Ventures, formerly known as Naspers Ventures and Food, contributed to a smaller Series I earlier this year that also featured several brand-name investors. Zwiggy has a partner network of around 160,000 restaurants and plans to expand into grocery delivery and intra-city courier services.
More on South Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.