Zomato secures $210 Mn more from Alibaba’s payments affiliate Alipay

Zomato

The year 2018 would be counted as one of the best periods for foodtech unicorn Zomato. Right from fundraising to monthly order run rate and launching subscription-based loyalty programs, the Gurugram-based company has been leading from the front.

After raking in $200 million from Alibaba’s payments affiliate Alipay in February, Zomato has bagged another round of $210 million from the same.

According to a stock exchange filing by Info Edge, Zomato has signed a definitive pact to undertake the primary fundraise from Alipay Singapore Holdings.

Following the deal, Info Edge’s stake in Zomato will reduce to 27.68 percent from 30.91 percent as of March 2018.

The development comes against the backdrop of Ant Finacial’s securing the right to become the largest shareholder in Zomato, replacing its holding company Info Edge.

Meanwhile, the company is reportedly negotiating a $100 million deal with China’s online travel giant CTrip. The deal may take Zomato’s valuation in the range of $1.8-2 billion.

Also ReadOnline travel behemoth CTrip has larger strategy for Indian market

The Deepinder Goyal-led company closed FY18 with 40 per cent growth in revenue to Rs 466 crore from Rs 332 crore in previous fiscal. It also squeezed its losses in the tune of 73 per cent to Rs 106 crore from Rs 390 crore in the preceding fiscal.

Recently, Zomato claimed to reach 21 million monthly delivery mark and took a lead over rival Swiggy, which does around 20 million deliveries a month.

In contrast, Swiggy was also in talks with Tencent to raise a whopping $700 million round that could make it a $2.5 billion-valued company. It is yet to disclose its updated monthly order run rate and financial details for the last fiscal, but Swiggy’s growth including doubling down on private labels would be a matter of concern for Zomato in near future.

The development was reported by Bloomberg Quint.

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