BENGALURU: Zomato is now India’s most valued food delivery start-up, hitting a valuation of $3.9 billion and surpassing rival Swiggy’s $3.6 billion. Before Friday, the Hurun India Unicorn Index 2020 had pegged both Swiggy’s and Zomato’s valuations at $3.6 billion.
Investors have been betting on food delivery majors despite the constraints of the pandemic and Swiggy had raised $156 million in a funding round earlier this year, led by South African internet giant Naspers and seeing participating from others including China’s Tencent.
Zomato’s attempts to raise around $150 million from China’s Ant Financial had hit a snag after India- China tensions flared. However, its Friday fundraise beats Swiggy’s handily.
The company announced that it has closed a $660 million funding round at a $3.9 billion valuation, making it the most valued food delivery start-up in the country.
It also said it has eyes on a possible IPO by June. According to Zomato CEO Deepinder Goyal, Zomato’s focus next financial year will be on food delivery unit economics, and moving away from the loss model. The firm has already begun focusing on cutting down discounts and delivery cost per order.
The list of investors participating in the round include Tiger Global, Kora, Luxor, Fidelity (FMR), D1 Capital, Baillie Gifford, Mirae, and Steadview, Goyal said.
The segment is headed for a major recovery, Goyal noted, with December registering the highest ever Gross Merchandise Value, almost 25 per cent higher than the previous peak in February.