Zomato Raises $660 Mn At A Valuation Of $3.9 Bn
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Online food delivery and restaurant guide platform Zomato co-founder and chief executive officer Deepinder Goyal announced on Friday to have closed a $660 million primary financing round at a post-money valuation of $3.9 billion.
“Ten new investors are joining us in our journey. This list includes Tiger Global, Kora, Luxor, Fidelity (FMR), D1 Capital, Baillie Gifford, Mirae, and Steadview,” he commented, in a series of tweets.
“Food delivery in India is rapidly coming out of COVID-19 shadows. December 2020 is expected to be the highest ever GMV month in our history. We are now clocking ~25 per cent higher GMV than our previous peaks in February 2020,” Goyal further said.
He believes that the tailwinds for food delivery businesses are clearly visible and that the growth of the sector will accelerate post-vaccine.
The 37-year-old entrepreneur remarked later that in addition to the funding of $660 million, they are in the process of closing a $140 million subordinate transaction. As a part of this transaction, they claimed to have already provided liquidity worth $30 million to the ex-employees.
India’s eating out market effectively collapsed briefly after the imposition of the nationwide lockdown. Goyal's tweets on Friday emphasized the recovery that has been seen in the sector.
The foodtech founder expressed his gratitude in his concluding tweet, “I am grateful for their contribution in building @zomato and am glad that we created some wealth for these super amazing people. A number of these ex-zomans are busy working on their own startups and will not need to raise seed capital from external investors.”
According to him, the company is on track to record its best-ever monthly sales in December 2020.
Online food and grocery retail was anticipated to touch $10.5 billion by 2023, driven by an amplified variety of products and attempts like the express delivery process in action, according to research conducted by a consulting firm last year.