Singapore’s Temasek is in discussions with Zomato to invest as much as $100 million, a previously announced investment by Ant Financial has been delayed due to the current anti-China sentiment and new foreign direct investment (FDI) rules.
The new FDI policy mandates prior government approval for investments by entities based in countries that share a land border with India. Ant Financial, an affiliate of Alibaba Group Holdings, has invested only $50 million of an expected $150 million into Zomato.
Temasek holds 3% stake, having invested Rs 310 crore into the company. Zomato was valued at $3 billion in January. The valuation was, however, contingent on Ant fulfilling its commitment.