[Funding Alert] Zomato Raises $150 million From Ant Financial Zomato's top shareholder Info Edge (India) stake will drop to 25.13 per cent from 26.38 per cent after the funding

By Entrepreneur Staff

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Zomato

Gurgaon-based restaurant aggregator and food delivery major Zomato has raised $150 million dollars from Alibaba affiliate Chinese investor Ant Financial. A Zomato spokesperson confirmed the news to Entrepreneur India. He said, "We confirm that we have raised $150 million from Ant Financial as a part of a larger round. Ant Financial has been a steadfast partner in our journey towards achieving market leadership in on-demand food delivery in India, and dining out globally."

Zomato was valued as $3 billion in this investment round. Ant financial has been an investor in Zomato since February 2018, when it picked up 14.7 per cent stake. In November 2019 after participating in another round of funding, it increased its stake to 23 per cent.

Fierce Competition

The latest round of funding will help Zomato further expand its operations and compete with rivals Swiggy and Uber Eats. Last year Zomato has also faced protests and backlash from restaurant associations, including the National Restaurant Association of India (NRAI) who accused Zomato of unfair trade practices by offering deep discounts to dining out customers under its Zomato Gold plan.

Also Read: Here is Why Restaurant Associations Are Against Zomato Gold In Delivery

Bengaluru based Swiggy's largest investor is South Africa-headquartered Naspers which almost holds 40 per cent stakes in the startup.

Reducing Cashburn

Zomato started as a restaurant aggregating platform and over the years has entered into food delivery sector, causing a lot of cashburn. In 2019, Zomato recorded a loss of $294 million in the March filing compared with a loss of $12 million a year earlier.

However, the company claims to have more than halved its cash burn to under $20 million a month from $45 million.

Also Read: Zomato, Swiggy, NRAI Had Progressive Talks, However No Clarity On Solutions

Entrepreneur Staff

Entrepreneur Staff

Editor

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Related Topics

Leadership

International Security Firm Welcomes Female India Native to an Essential Leadership Position

Yasmin Brar has been appointed as the Operations Strategy Director, a role that underscores the company's commitment to innovation, expansion, and strategic management

Growing a Business

The Owners of This Texas Farmers Market Took a Big Gamble. Here's How It Paid Off Bigger Than They Dreamed.

A Texas farmers market educates customers about the importance of shopping local for a healthy lifestyle and an even healthier small business community.

News and Trends

The Transformative Power Of Entrepreneurial Households In Shaping The Future Of The Indian Economy

According to the report, India's 247 million entrepreneurial households drove an $8.8 trillion transaction value in FY23 unleashing a new economic landscape.

Thought Leaders

8 Reasons Why We Need Entrepreneurs Now More Than Ever

Entrepreneurship is the driving force behind the global economy's growth. Now more than ever, we need new entrepreneurs to spur innovation.

News and Trends

Kaynes Semicon To Invest INR 4,000 Crore On OSAT/ATMP

The investment is expected to create around 1,000-plus jobs