Zomato’s valuation touches $5.4 Bn with a $250 Mn round led by Kora

Zomato is having a ball and continuing its fundraising spree, it has just raised $250 million led by Kora Management. Existing investor Fidelity Management, Tiger Global also participated in the round while Bow Wave Capital and Dragoneer Investment Group are new investors to join in.

Kora has infused $150 million whereas Fidelity and Tiger Global have put in $50 and $55 million respectively, Info Edge said in a regulatory filing.

New York-based Bow Wave Capital has invested $20 million and Dragoneer participated with $10 million. Post infusion of the fresh proceeds, Zomato has been valued at $5.4 billion. 

This is a 38% jump in the valuation of the foodtech company within two months. 

Zomato was valued at $3.9 billion during its $660 million worth tranche in Series J round concluded in December. Tiger Global, Kora, Luxor, Fidelity, D1 Capital, Baillie Gifford, Mirae Asset and Steadview Capital had participated in the above round.

The fresh proceeds appear to be a part of a pre-IPO round, and according to Entrackr sources, the company would end up raising more capital before its public listing. 

The infusion also demonstrates that investors are bullish on Zomato’s prospect in public markets. While it’s not clear whether Zomato will go IPO in India or preferred local listing, it’s unlikely to go public on the indigenous stock exchanges as it’s still not close to churning profit.

Zomato’s IPO plan may become a reality in 2021, but the company’s performance in FY20 shows that it needs a turnaround to recover from losses. According to Fintrackr, the company’s losses grew 2.4X to Rs 2,385.6 crore in FY20. The online food delivery major also registered a 98.4% surge in its collections to Rs 2,605 crore in FY20 from Rs 1312.6 crore in FY19.

Zomato had also acquired full-stack fitness platform Fitso in a deal worth Rs 80-100 crore. Entrackr had exclusively reported the development in January.