Zomato plans IPO in 2021; raises $160 million from Tiger Global, Temasek unit

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New Delhi: Online restaurant discovery platform Zomato has started preparations to go for an initial public offering (IPO) in 2021.

Zomato has raised USD 160 million (about Rs 1,173 crore) in funding from Tiger Global and Temasek Holdings subsidiary MacRitchie Investments, valuing the online food ordering platform at USD 3.3 billion, said Info Edge.

“Zomato Pvt Ltd has closed a primary fund raise of USD 100 million from Tiger Global Management, LLC (through its investment vehicle Internet Fund VI Pte Ltd and/or any of its affiliates), and USD 60 million from MacRitchie Investments Pte Ltd, an indirect wholly-owned subsidiary of Temasek Holdings and/or any of its affiliates,” Info Edge said in a regulatory filing.

“On a fully converted and diluted basis, Infoedge’s effective stake in Zomato stands at 22.2 per cent,” the filing said.

“Our finance/legal teams are working hard to take us to IPO sometime in the first half of next year. The value of our business is going up dramatically, all thanks to the hard work and commitment of our team. We hope to create a lot of value for our current employees who have Esops sometime in the next year,” CEO Goyal told employees in an email.

Zomato founder and CEO Deepinder Goyal told employees about the initial public offering (IPO) on Thursday—the day Info Edge informed the exchanges that Zomato has raised $103 million from New York-based Tiger Global Management as a part of its ongoing Series J financing.

Currently, Zomato is looking to close the latest funding round, which will increase its bank balance to $600 million, Goyal said.

The online food delivery segment has seen significant growth in the last few years with Zomato and Swiggy competing head-on to grab market share. Zomato, currently valued at $3.5 billion.

In January, Info Edge had informed the stock exchanges about Zomato raising USD 150 million (over Rs 1,065 crore) from existing investor Ant Financial at a pre-money valuation of USD 3 billion.

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 the diluted basis upon closing of the transaction.

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