Zomato is preparing to go public. In an email to employees seen by Mint, Zomato founder and CEO Deepinder Goyal stated that the goal of this restaurant aggregator and food delivery app is by mid-2021 Submit and issue an IPO (initial public offering). Prior to this, Zomato raised US$102.5 million (approximately 7.5 billion rupees) from the New York-based hedge fund Tiger Global Management, bringing Zomato’s valuation to US$3.4 billion (approximately 25 billion rupees).
Mint reports: “We have raised a lot of money, and today we have more cash in the bank (approximately US$250 million) than ever before.” “Tiger Global, Temasek, Baillie Gifford and Ant Financial have already participated in our book This round of financing, and more celebrities have joined this round of financing. We estimate that this round of financing will soon bring us US$600 million in funds.”
“The best part is that our burn rate is very low, and our market share in all regions is accelerating. […] We did not immediately plan how to spend this money. We see this cash as the “war chestpiece” of the future [mergers and acquisitions], And resist any pranks or price wars in the competition in our various business areas. “
Zomato earlier this year announced a later J round of financing-what Goyal refers to as “current financing.” Since then, it has raised US$5 million (approximately Rs 370 million) from the Edinburgh-based Pacific Horizon Investment Trust, when Zomato was valued at US$3.25 billion (approximately 23.9 billion rupee). Zomato added that in August, Singapore’s Temasek-owned MacRitchie Investments invested US$62 million (approximately Rs 4.55 billion).
Tiger Global injects US$102.5 million [PDF] This makes it the largest fundraiser for Zomato in 2020. In fact, Zomato raised US$150 million (approximately 11 billion rupees) from Alibaba’s Ant Group at the beginning of the year, but after receiving all the investment, it faced trouble. Foreign direct investment regulations.
Tiger Global’s investment gives it a 3.01% stake in Zomato. Goyal remains the largest individual shareholder of Zomato, with a 7.7% stake.
Zomato’s new valuation is US$3.4 billion, bringing it closer to its biggest competitor, Swiggy, which is valued at US$3.6 billion (approximately 264 billion rupees).
But even if it brought in more cash and inflated itself, in the ongoing coronavirus pandemic, Zomato also laid off employees and cut the rest of the salary.