Zomato’s Valuation Might Increase Soon!
Zomato is on the verge of finalising a fresh $600 million round of funding that is likely to be led by its existing Chinese investor, Ant Financial, said people aware of the movement. Singapore based Temasek is kind of expected to put in a significant amount of capital, as a part of it fund infusion. This would kind of intensify the battle between Zomato and Swiggy, as per reliable sources.
This accounts for Zomato’s valuation to kind of cross $3 billion in the new funding round. This means that there would be a hefty bump over the $2 billion valuation at which funds were raised earlier this year.
Ant Financial has been backing Zomato ever since it picked up a stake of 14.7 percent in February last year.
What About Swiggy?
Swiggy has been talking to new investors like Korea Investment Partners, Mirae Asset Management, STIC Investments and Neoplux in order to stick to a valuation of $500 million financing round. Since August this year, Zomato faced the ire of the restaurant owners’ body National Restaurant Association of India (NRAI) and the lobbies that have raised concerns on its Gold membership program. NRAI also protested to Zomato’s extension of the Gold program, which entitles customers to free food and drinks.
Recently, there was a campaign launched called #lLogout. However, Zomato said that its Gold membership has grown despite the campaign.