Zomato gets Rs 284 crore from US investor

Food delivery and restaurant discovery platform Zomato has seen fresh capital infusion of Rs 284 crore from US-based Glade Brook Capital Partners, latest regulatory documents show. These documents were sourced from business intelligence platform Paper.Vc. The regulatory filings show that Gurugram-based Zomato issued 13,000 class 1 preference shares to Glade Brook for the fund infusion. The resolution of the same was passed on February 5.

The new capital raised by Zomato is part of the series I round when Zomato raised around $210 million late last year from Alibaba group affiliate Ant Financial, as per initial estimates from Paper.Vc. This comes at a time when Zomato is in middle of talks to sell its UAE business to Germany’s Delivery Hero. On January 31, TOI reported saying Zomato is seeking about $200-250 million for its UAE business.

It has also held talks with Chinese private equity player Primavera Capital for a new round to the tune of $500 million- $ 1 billion, but a deal has not been finalized. Zomato raised $410 million from Ant Financial last year across two rounds of funding. But main rival Swiggy was able to mop up $1.3 billion across three rounds, significantly upping the ante.

On an average, the online food delivery market is clocking over 40 million orders a month, as per industry analysts. Both Swiggy and Zomato are said to be losing $30-40 million each a month as they offer discounts to customers and incentives to delivery personnel, even as they face competition from ride-hailing companies Ola and Uber which are pushing in this market.

Source:-https://retail.economictimes.indiatimes.com/news/food-entertainment/food-services/zomato-gets-rs-284-crore-from-us-investor/67863432

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