Zomato in Advanced Stages of Talks with Temasek Holdings to Raise $60-80 Million
Zomato is in advanced stages of talks with Singapore’s Temasek Holdings for raising fresh funding of an amount of $60-$80 million. The new funding will be used to enter into food delivery business in India by enabling the last-mile delivery mechanism and to expand its global operations in new geographies such as Europe, South East Asia and Latin America.
Update: In a blog post, Zomato has announced the confirmation of $60 million funding round led by new investors Temasek Holdings, and existing investors Vy Capital. The raised funding will be used to make investments in its new businesses, such as online ordering, table reservations, cashless payments, point-of-sale, and its newly launched Whitelabel platform.
The company is in advanced stages of talks with a lot of people. Temasek is expected to lead the new round of funding, while existing investors may also participate, as per ET report.
Info Edge is the majority shareholder in Zomato with slightly over 50% stake, while Sequoia Capital and Vy Capital are other key investors.
Zomato makes strategic investments in Pickingo and Grab
To strengthen its food ordering business, Zomato has acquired minority stakes in hyperlocal delivery companies Grab and Pickingo, for an undisclosed amount. The move will help Zomato to bring restaurants that typically do not deliver food online on Zomato Order. To start with, the services will be available in five cities—NCR, Mumbai, Bengaluru, Hyderabad and Pune. With in a few months, It expects to expand to other cities as well.
Grab was founded in 2012 by Jignesh Patel, Nishant Vora and Pratish Sanghvi, it is a hyperlocal logistics service connecting neighborhood stores, restaurants & online platforms to deliver their products to the end consumers.
Gurgaon-based Pickingo Logixpress Pvt. Ltd was founded in 2014 by Rahul Gill, Piyush Sharma, Rishab Papneja and Siddharth Maheswari. It manages delivery for local merchants across six cities in India, has so far raised $1.3 million.
Zomato is also launching its online ordering service in Dubai, Australia and South Africa later this month.
Zomato Partners with Delhivery to Strengthen Food Delivery Supply Chain
Zomato has partnered with Delhivery, the logistics startup that provides supply chain solutions to online and offline retailers. This move will help Zomato to leverage its food delivery services.
Sahil Barua, Founder & CEO, Delhivery said, “The food-tech space in India is heating up, and we’re excited about this partnership with Zomato. Delivery logistics for restaurants have always been a challenge, and we believe the technology-first approach will help simplify operations for them, as well as enrich customer experiences.”
In May 2015, Delhivery raised a Series D round of $85 million led by Tiger Global Management with participation from existing investors, Multiples Alternate Asset Management, Nexus Venture Partners, and Times Internet Limited.
Founded in 2008, Zomato has raised a total of $163 million in funding and has a presence across 22 countries. It has also expanded its offering to include in-app Cashless Payments, Online Ordering, Table Reservations, and a Point-of-Sale system, to help connect restaurant businesses and customers seamlessly.