Zomato raised a fresh $250 mn funding; valued at $5.4 bn post fundraiser
Zomato has raised $250 mn, 2 months after closing the $660 mn Series J financing round, before the much awaited IPO. This influx gives Zomato a post-money valuation of $5.4 bn, up from $3.9 bn in December last year.
Another player, Amazon, also entered the food delivery market last year, but its operations are currently limited to parts of Bangalore. At stake is India’s food delivery market, which analysts at Bernstein expect to balloon to be worth $12 bn by 2022.
Zomato and Swiggy have improved their finances in recent years, which is especially impressive because making money with food delivery is very often more challenging in India. Unlike Western markets such as the U.S., where the value of each delivery item is about $33, in India, a similar item carries the price tag of $3 to $4, according to research firms.