Zomato raises another $250 M ahead of IPO

IPO-bound Zomato’s valuation jumps to $5.4 billion as it cashes in another $250 million from its existing and new investors ahead of its Initial Public Offering (IPO) in June.

Zomato has raised the latest investment from investment firms like Kora Management, Fidelity Management, Tiger Global, Bow Wave Capital Management and Dragoneer Investment Group, shows a regulatory filing by one of the company’s earliest investors Info Edge.

Zomato completed the primary pre-IPO fundraise at a total valuation of $5.4 billion, a sharp rise from $ 3.5 billion in December. In the past year, the start-up has been on a fundraising spree to bolster its cash reserve as it looks to build a war chest for acquisitions as well as to fight any possible fight in the future.

Even while Zomato faced the test of times in 2020, it also brought the food tech startup closer to profitability. “In terms of the size of the business, COVID-19 has set us back by a year or so – but a year is only a small blip when you are building a company for the next 100 years,” wrote Zomato CEO Deepinder Goyal.

Zomato, founded in 2008, is on its way to be one of the first startups in the country to head for an IPO.