Zomato has raised approximately Rs 886 crore from Alibaba’s online payment platform Alipay Singapore. The latest funding comes weeks after the food-ordering platform announced the acquisition of TongueStun, a Bengaluru-based startup that serves corporate catering space in six Indian cities, including Bengaluru, Chennai, Hyderabad, Pune, Mumbai, and Gurugram and Noida.
A regulatory filing by Info Edge (India) states “Zomato has signed a definitive agreement to undertake a primary fund raise of approximately $210 million from Alipay Singapore Holding Pte Ltd (which is an existing shareholder of Zomato) and/ or any of its affiliates, and upon the closing of this fund raise.”
Info Edge (India) held 30.91% of the share capital of Zomato that has now been reduced to about 27.68% on ‘fully converted and diluted basis’, as per the filing available on the BSE website.
In March, Zomato raised $150 million (roughly Rs 1,109 crore) from China’s Alibaba Group Holding at a valuation of more than $1 billion (roughly Rs 7,400 crores). Ant Financial Services Group, Alibaba’s payment affiliate, additionally bought $50 million (roughly Rs 369 crores) worth of shares in secondary purchases.
Launched in 2008 as a restaurant listing service, Zomato is presently available across 41 cities in India and has since added food ordering and table booking to its portfolio of services.
It competes against the likes of Swiggy, Uber Eats, and Foodpanda that all are among the popular entities in the online food ordering market in India.