The funding would help Zomato compete with rivals such as Swiggy, Uber Eats and Ola-owned Foodpanda, which are also betting big on the online food ordering and delivery market in the country.
Online
restaurant guide and food ordering startup Zomato
has raised Rs 284 crore from US-based investor Glade Brook Capital
Partners which counts companies such as Uber, Airbnb and Snapchat
among its portfolio firms.
The
financing is part of Zomato’s Series I funding round that started
in November 2018 when Alibaba-backed Ant Financial invested Rs 1,539
crore in the New-Delhi based firm. Zomato allotted 13,000
‘compulsorily convertible cumulative preference shares’ for Rs
2,18,790 per share to Glade Brook to raise the funding, according to
regulatory documents filed by Zomato, which were sourced from
business signals platform paper.vc.
The
funding would help Zomato compete with rivals such as Swiggy,
Uber Eats and Ola-owned Foodpanda, which are also betting big on the
online food ordering and delivery market in the country.
The
online food ordering and delivery market is expected to grow at a
compounded annual growth rate of more than 45% to reach $11 billion
in gross merchandise value (GMV) by 2023, according to RedSeer
Consulting, a research and advisory firm.
Founded
by Deepinder Goyal and Pankaj Chaddah in 2008, Zomato said it
provides in-depth information for over 1.4 million restaurants across
24 countries and serves more than 50 million users every month.
It
has raised a total of $653.8 million in 11 rounds, according to
Crunchbase. The firm is investing a lot of capital on technologies
like artificial intelligence and data science as well as acquiring
innovative startups to have an edge over its competitors. Last
December, the company acquired drone start-up TechEagle Innovations,
for an undisclosed sum. The acquisition would help it carve a path
toward drone-based food delivery in India, creating a hub-to-hub
delivery network powered by hybrid multi-rotor drones.
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