Ahead of a potential listing on exchanges, Zomato is on the verge of closing a $500 million investment that would value the Gurugram-based company at around $5.5 billion.
Existing investors Tiger Global, Kora Investments, Steadview, Fidelity, Bow Wave, Vy Capital along with new backer Dragoneer Investment Group, will participate in the financing round, The Economic Times reported.
The fundraising will include a mix of primary cash infusion of $250 million by existing backers and a similar amount via a secondary sale of shares by Chinese investors Ant Group (an affiliate of Alibaba) and Sunlight Fund, the report said.
Moneycontrol could not independently verify the story.
Zomato co-founder Deepinder Goyal did not comment when contacted by The Economic Times.
Also read: Zomato raises $660 million at a valuation of $3.9 billion
"Ant Group remains committed to our vision of bringing inclusive financial services to global consumers and small-and-micro businesses, by working closely together with our global partners, including Zomato," a spokesperson told the paper.
After the infusion of capital, Zomato is expected to have $1 billion in cash before its proposed initial public offering (IPO), the report said.
"Zomato is aiming for an IPO by June this year valuing the company at $6-8 billion in the public market," a source told the publication.
Also read: Zomato raises USD 195 mn in funding from 6 investors, valuation touches $3.6bn
Moneycontrol had in September 2020 reported that Zomato is planning to file for an IPO in the first half of 2021.
In December 2020, the company had closed a $660 million primary financing round, which valued the company at $3.9 billion.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
