Zomato has raised $150 million from investor Ant Financial, an Alibaba affiliate, at a valuation of $3 billion for the food delivery startup. The top shareholder Info Edge (India) Ltd said that after the funding its stake will drop to about 25.13 per cent. It had a 26.38 per cent stake as of March last year. The fund infusion comes as Zomato pushes for a bigger market share in the highly competitive Indian food delivery space in a race with rivals such as Tencent-backed Swiggy and UberEats.The capital is part of a larger $500 million fundraising that is likely to close in the next two months, media reported.
The Gurugram-based restaurant aggregator recorded a loss of $294 million in the year to March compared with a loss of $12 million a year earlier as it burned more cash in its Indian delivery business to grab new customers, unaudited figures from its annual report showed.
Read EquityPandit’s Nifty Outlook for the Week