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    Zomato to raise $150 million from Ant Financial, valuation at $3 billion

    startup | IST

    Zomato to raise $150 million from Ant Financial, valuation at $3 billion

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    Zomato's top shareholder Info Edge (India) Ltd said in a filing to stock exchanges on Friday that the funding will reduce its stake to about 25.13 percent.

    Food delivery startup Zomato is raising $150 million from existing investor Ant Financial, an affiliate of China's Alibaba, at a valuation of $3 billion.
    Zomato's top shareholder Info Edge (India) Ltd said in a filing to stock exchanges on Friday that the funding will reduce its stake to about 25.13 percent. The company owned a 26.38 percent stake as of March last year.
    Zomato confirmed the investment. “Yes, we can confirm that we have raised $150m from Ant Financial as a part of a larger round, it told CNBC-TV18. "Ant Financial has been a steadfast partner in our journey towards achieving market leadership in on-demand food delivery in India, and dining out globally.”
    The fresh infusion of funds comes as Zomato is pressing ahead for a bigger market share in the highly competitive Indian food delivery space where it is battling a scrum of competitors such as Tencent-backed Swiggy and Uber's UberEats. The money is part of a larger $500 million fundraising that is likely to close in the next two months, according to media reports.
    Zomato confirmed that the $150 million fundraise was part of a larger round, but did not give further details. The Gurugram-based restaurant aggregator recorded a loss of about Rs 1,000 crore in the year to end March 2019 on revenues of Rs 1,400 crore.
    The sharp spike in losses of Rs 80 crore a year earlier was because Zomato burnt more cash in its Indian delivery business to grab new customers, according to unaudited figures from its annual report.
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