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Last Updated : Feb 02, 2018 08:04 PM IST | Source: Moneycontrol.com

Meal Time: Zomato raises $200 million from Alibaba, to compete with Ola's Foodpanda

The funding round makes the Gurgaon based food-tech company amply funded to compete with Softbank-backed Ola which recently acquired Foodpanda India.

Restaurant exploration and food delivery platform Zomato has raised USD 200 million from Alibaba Group owned ANT Small and Micro Financial Services.

The funding round makes the food-tech company amply funded to compete with Softbank-backed Ola which recently acquired Foodpanda India.

The latest round of funding includes secondary share sale of USD 50 million by Zomato’s major shareholder Info Edge to Ant Financials.

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"About 32,629 shares of Zomato Media Pvt Ltd have been agreed to be bought by Alipay Singapore Holding Pte Ltd, a unit of Ant Small And Micro Finacial Services Group," Info Edge informed the Bombay Stock Exchange in a filing.

Info Edge, which runs job portal Naukri, will dilute its stake in Zomato to about 30.91 percent after this round of capital infusion, the former said in a filing on the Bombay Stock Exchange.

Zomato's valuation is now estimated to be around USD 1.1 billion, as per reports.

Started in 2008 by IIT-Delhi graduates Deepinder Goyal and Pankaj Chaddah, Zomato has so far raised about USD 420 million including this round.

Zomato Funding rounds

(In pic: Zomato's funding rounds till date)

The company also competes directly with Bangalore based Swiggy that has raised close to USD 155 million.

This the much awaited funding round for Zomato which trimmed its staff in 2016 and became profitable. The company also stopped acquiring smaller food-tech and online restaurant guides in 2017. It has made over 20 acquisitions so far including  that of US-based Urbanspoon.

The entry of Alibaba into India's food-tech business makes it competitive as now the industry has three big investors including Softbank and Naspers.

The funding round was said to be delayed in 2016 and 2017 for Zomato on valuation issues.

The entry of Alibaba-Softbank ecosystem into food-tech sector could also trigger consolidation in future.

Ant Financial is the payments business linked with Alibaba Group Holding, China’s largest e-commerce company. Alibaba and Softbank have invested in companies such as Paytm and Snapdeal in the past.

With the investment, Zomato could be seen aggressively in India market with Foodpanda India and Uber Eats in 2018.
First Published on Feb 2, 2018 11:11 am
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