12,656 Class J5-1 CCCP shares were issued to US-based Kora Investments.
In the run-up to its expected IPO in the first half of 2021, food delivery company Zomato continues to fill up its coffers. The company, which competes with Swiggy in the hyper-competitive food delivery market, has now raised another tranche of its targeted $600 million capital infusion. It has secured nearly $52 million (Rs 379.97 crore) from New York-based investment firm Kora Investments, according to regulatory filings accessed by Tofler. The current round is part of the ongoing Series J round of funding.
“The board of directors in their meeting held on October 6, 2020, had approved the issuance of 12,656 Class J5-1 compulsorily convertible cumulative preference shares to Kora,” the filings read. Zomato’s co-founder Deepinder Goyal in December last year had said that the company is looking to raise up to $600 million in a new funding round. Goyal had written to the company’s employees in an internal email that its “cash in the bank of around $250 million is more than ever in our history…we estimate that our current round will end up with us at $600 million in the bank very soon.”
Zomato had earlier this year secured $50 million from China’s Ant Financial out of its committed $150 million in January after the Indian government notified that investment into India from neighbour countries can come only under the government route (approval route). In April, the company had raised nearly $5 million from Pacific Horizon Investment Trust managed by the UK-based investment management firm Baillie Gifford. Last month, it got $62 million from existing investor Temasek and then $104 million from Tiger Global, Baillie Gifford and Ant Financial. The valuations of both Swiggy and Zomato were pegged at $3.5 billion each as of August as per Hurun India Unicorn Index 2020.
Zomato and Swiggy have been able to recover back from the Covid-induced crisis as according to Goyal’s last month blog on the company’s website, food delivery sector clocked around over 85 per cent of the pre-Covid gross merchandise value. Earlier this week, Goyal had tweeted that “food delivery volumes have reached pre-Covid peaks” even as he expected “the food delivery sector to continue to grow at ~15-25% m-o-m for the foreseeable future.”