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 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. With the fresh capital, Zomato is expected to have $1 billion in cash as it inches closer to its public market debut, said another person familiar with the goings-on in the company.
“Zomato is aiming for an IPO by June this year valuing the company at $6-8 billion in the public market,” said a person familiar with the matter. Sources said Goldman Sachs, Morgan Stanley, Credit Suisse, and Kotak Mahindra Bank have been appointed by the company to run its IPO process. 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. In December 2020, the company had closed a $660 million primary financing round, which valued the company at $3.9 billion.