Zomato, India’s food ordering and delivery startup, has raised $102.5 million to power its growth.
MoneyControl.com reported that Tiger Global Corp, better known as “The Tiger Fund,” a New York-based equity investment firm, led the fundraising deal, bringing Zomato’s market valuation to $3.4 billion.
With this latest investment, the food aggregator has raised a total of $319.5 million since January.
Last week, the food ordering and delivery startup completed its planned fundraising deal with a division of the Singapore government’s Temasek Holdings. Zomato has now raised $62.4 million from Temasek, according to regulatory filings.
Swiggy, India’s largest online food ordering and delivery platform, has received about $1.64 billion from investors.
This latest infusion of cash comes as Zomato’s revenue has grown 105 percent to reach $394 million in fiscal year (FY) 2020, while its losses increased to $293 million, up from $277 million in FY19.
Results from its FY21 report will provide investors with a better picture of the impact of COVID-19, as India’s economy closed down for months and the company laid off 13 percent of its workforce. Revenue has yet to rebound to pre-pandemic levels.
But so far, the results have been promising, the company said. During the first quarter of FY21, Zomato had $40 million in revenue compared to $12 million in losses.
“In the last few quarters, we have fast-tracked our efforts toward making our business profitable and driving efficiency into our spends,” CEO Deepinder Goyal wrote in a July blog post. “While COVID-19 has impacted the size of our business, it has accelerated our journey to profitability.”
Despite strong demand for food delivery in India due to dining restrictions, Zomato researchers last month reported transactions are below pre-pandemic levels because of a supply problem as many restaurants remain closed.
“The number of restaurants offering food delivery are at 70 percent of pre-COVID levels. Out of this, about 5 percent [of] restaurants did not offer food delivery services pre-COVID. Most of these are dining out-centric places, which have shown agility to pivot to food delivery,” Zomato’s researchers wrote.