Zomato to acquire $146 Million as it plans for IPO next year


The food delivery giant Zomato has been financed a sum of ₹ 37.9 Crore in October. Pacific Horizon Investment Trust, a firm managed by UK’s Baillie Gifford and Co. Ltd, has funded almost $ 5.1 million to the delivery venture, as Series J’s funding part.
The Gurugram based startup Zomato is doing the necessary steps for getting in the public listing for the initial half of 2021. This food delivery unicorn Zomato is going to raise approximately $ 146.5 million for its current round of funding in Series J.

Zomato has been funded by the firm Pacific Horizon Investment Trust for an amount of $5 million in March, 2020.

The proceeding round will catch up with Steadview Capital, Lugard Road Capital, Mirae Asset-Naver Asia Growth Fund, ASP India LP pump, and hedge-fund Luxor Capital Partners in the new capital for the next weeks.

The food tech-giant is going to allot 34,873 class J7 necessarily CCPS, Convertible Cumulative Preference Shares, to the financiers for a predicted cost of ₹ 300,235 per share, getting an aggregate near to ₹ 1,047 Crore , approx $141 million, as shown by the filings.

In an attempt to strengthen its financial resources, the startup has been diving into the fundraising drive for the last few months. It has gained success in amassing almost $ 270 million in 2020 from capital investors such as Temasek, Ant Financial, through MacRitchie Investments, and Tiger Global Management.

As Livemint stated this week, the startup Zomato had already settled with Cyril Amarchand Mangaldas, legal advisor from Indus Law, and Kotak Mahindra Bank as an investment banker for the IPO, Initial Public Offering.

If somehow the startup Zomato puts into action with the IPO, it will align with the MakeMyTrip’s likes which landed on the Nasdaq in 2010 and Info Edge India Ltd, which is the single-largest shareholder of Zomato, which was listed on the stock exchange BSE in the year 2006.

Zomato had already altered its leadership team in October, giving advancement to Akshant Goyal for the position of Chief Financial Officer (CFO). Also, the startup has set foot on giving exits to its employees via secondary share sale transactions. The former CFO, Akriti Chopra, who was in command of fundraising, will be supervising the development programmes for people.

The present monetary value is $ 3.3. billion for the delivery startup Zomato, according to the latest funding round of the month OCtober, while the Kora Investments proliferated an amount of almost $ 52 million.

Also, the startup have in prospect to move to the public, yet there is no considerable improvement in the diminishing returns of the firm. The delivery tech-giant had gone uphill in its earnings to $ 394 million in 2019 to 2020. However, its losses rose significantly to $ 293 million from $ 277 million in the previous fiscal year of 2018 to 2019. According to the Analysts, these losses would be hardly impacting Zomato’s IPO aspirations.