Zomato seeks to raise $400 million at $2 billion valuation: Report
New Delhi:Online restaurant discovery and food ordering startup Zomato Media Pvt Ltd is looking to raise $400 million dollars in investment, driven largely by existing investors Ant Financial and Temasek, according to a Livemint report.
Zomato is seeking the investment at a valuation of as much as $2 billion, as the fast-growing food-tech space continues to draw investor attention, Mint said citing two sources close to the development.
The report comes just a day after rival Siwggy on Thursday announced it had raised $210 million in its latest round of funding, led by South Africa’s Naspers and investment house DST Global, valuing the start-up at well over $1 billion, and giving it entry into the startup unicorn club.
Apart from existing investors, Zomato is also in talks with Alibaba Group for the existing funding round that could value the company anywhere from $1.6-$2 billion pre-money, said the Mint report.
Mint reported in April that both Swiggy and Zomato were in talks to raise next round funds within two months after raising $100 million and $150 million, respectively.
Interest in the food tech sector has revived after Ola’s acquisition of Foodpanda, and UberEATS’s foray into the market.
Zomato, founded by Deepinder Goyal and Pankaj Chaddah, is present in 23 countries and earns revenues from advertising and food delivery. The startup almost doubled its revenue to Rs 399 crore in the year ended 31 March 2017, and saw a drop in losses to Rs 389 crore from Rs 590 crore, a year ago. Currently, Zomato clocks about $13.4 million in revenue per month.
Swiggy, on the other hand, currently operates in 15 cities and continues to expand it reach to newer cities. It claims to have more than 35,000 restaurant partners on its platform and a delivery fleet of over 40,000 in Bengaluru, Delhi, Mumbai, Pune, Hyderabad and Kolkata.