Gurugram-based food delivery unicorn Zomato has raised ₹280 crores ($40 million) from US-based private investor Glade Brook. The funding round is expected to be a part of a larger ₹7,000 crores ($1 billion) round Zomato is reported to be raising from existing investors Ant Financials and some new investors.
In October 2018, Zomato raised ₹1,470 crores ($210 million) from Ant Financials. Info Edge’s ownership in Zomato will drop to 27.68 per cent from 30.91 per cent with this additional investment from Ant Financials, according to a regulatory filing by the firm. The reported valuation of Zomato is ₹14,000 crores ($2 billion).
Zomato’s biggest rival Swiggy has also raised ₹7,000 crores from Naspers and other existing investors last month. It is the single highest amount raised by a food tech company in India. Swiggy is the first-mover in this space as Zomato joined in the food delivery market when Swiggy had already deepened its roots.
Zomato acquired Bengaluru-based online caterer and office canteen aggregator TongueStun and entered the food delivery market last year. The food tech startup currently handles more than 2.2 crore monthly orders. It acquired delivery startup Runnr and increased its delivery fleet to 1.5 lakh partners.
According to research firm RedSeer, the overall food tech market in India is estimated to reach ₹17,500 crores ($2.5 billion) by 2021 against ₹4,900 crores ( $700 million) at present. It is clear that both the food tech companies are looking at gobbling a big chunk of that pie.