Zomato has raised $250 million, two months after closing a $660 million Series J financing spherical, as the Indian meals offer startup builds a war-chest before its IPO later this Twelve months.
Kora (which contributed $115 million), Fidelity ($55 million), Tiger Global ($50 million), Bow Wave ($20 million) and Dragoneer ($10 million) pumped the new capital into the 12-Twelve months-veteran Gurgaon-headquartered startup, Files Edge, a publicly listed investor in Zomato, disclosed in a submitting (PDF) to a local stock alternate. The new funding provides Zomato a put up-money valuation of $5.4 billion, up from $3.9 billion in December final Twelve months, said Files Edge, which owns 18.4% stake within the Indian startup.
The new funding reinforces the get self assurance customers have in Zomato, which struggled to elevate money for plenty of final Twelve months. Zomato, which obtained the Indian meals offer enterprise of Uber early final Twelve months, competes with Prosus Ventures-backed Swiggy (valued at about $3.6 billion) in India. Together they work with over 440,000 offer companions, a increased employees than that employed by Indian Division of Posts.
A third participant, Amazon, additionally entered the meals offer market in India final Twelve months, although its operations are aloof shrimp to parts of Bangalore.
At stake is India’s meals offer market, which analysts at Bernstein search recordsdata from to balloon to be worth $12 billion by 2022, they wrote in a characterize back to purchasers. With about 50% of the market fragment, Zomato is basically the latest leader among the three, Bernstein analysts wrote.
“We obtain the meals-tech enterprise in India to be smartly positioned to sustained divulge with enhancing unit economics. Snatch-charges are one in all the supreme in India at 20-25% and person traction is increasing. Market is basically a duopoly between Zomato and Swiggy with 80%+ fragment,” wrote analysts at Bank of America in a recent characterize, reviewed by TechCrunch.
Zomato and Swiggy have improved their price range in recent times, which is mainly impressive because making money with meals offer is terribly frequently extra tough in India. Unlike Western markets such as the U.S., where the cost of every offer item is ready $33, in India, a same item carries the cost price of $3 to $4, per analysis corporations.
Each and each the startups eradicated hundreds of jobs final Twelve months as the coronavirus pandemic hit their corporations. Zomato co-founder and chief govt Deepinder Goyal said in December that the meals offer market became “rapid coming out of COVID-19 shadows.”
“December 2020 is anticipated to be the supreme ever GMV month in our history. We’re now clocking ~25% increased GMV than our earlier peaks in February 2020. I’m supremely furious by what lies ahead and the impact that we’ll originate for our prospects, offer companions and restaurant companions,” he said.
In an email to employees in September final Twelve months, Goyal said Zomato became engaged on its IPO for “sometime within the first half of” of 2021 and became raising money to get a war-chest for “future M&A, and combating off any mischief or label wars from our competition in various areas of our enterprise.”