Zomato raises $660 million in its ongoing Series J funding round

Food delivery company Zomato on Friday said it has raised $660 million around (Rs 4,400 crore) as part of its ongoing Series J funding round from investors including Tiger Global and Kora, among others.

The transaction valued Zomato at a post-money valuation of $3.9 billion. The series J round also saw participation from Luxor, Fidelity (FMR), D1 Capital, Baillie Gifford, Mirae, and Steadview.

In a tweet, Zomato’s founder and CEO Deepinder Goyal said, "On top of this $660m, we are in the process of closing a $140m secondary transaction. As part of this transaction, we have already provided liquidity worth $30m to our ex-employees."

Earlier, Goyal said Zomato the company is plannning to go for an initial public offering (IPO) in the first half of 2021. The IPO is around the corner and waiting a little longer will result in significantly more value creation for all, he added.

"A number of ex-Zomans are doing their own startups etc.., and wanted to sell their Zomato employee stock ownership plans (ESOPs). We have been able to help them in that process. In total, our ex-employees have sold almost USD 30 million (around Rs 225 crore) worth of shares to investors," Goyal said.

Earlier this year, Zomato acquired the Indian business of Uber Eats in an all-stock deal that will give the ride hailing company 9.99 per cent stake in Zomato. Info Edge had said its shareholding in Zomato stood at about 22.71 per cent on fully converted and diluted basis upon closing of the transaction.