Zomato has new investors -Tiger Global and Kora Capital injecting $200M; Temasek investing $62 million

Zomato has roped in new investors. Tiger Global, Temasek, and Kora Capital in ongoing funding round plan to invest $250 million in the food tech platform. This deal will value the company at around $3 billion, according to people aware of the development.

The company has raised around $250 million collectively from Tiger, Kora, and Singapore’s sovereign wealth fund Temasek, an existing investor. Tiger may pump in another $100 million in Zomato.

For now, Temasek has invested $60 million. Further, $100 million each is coming from Tiger and Kora, a hedge fund focused on emerging markets. Singapore’s state investment arm Temasek Holdings has invested $62 million ( ₹456 crores) in the food-tech startup. It has allotted 15,188 shares to MacRitchie Investments, a unit of Temasek, at an approximate share premium of ₹293,535.

Zomato had in March raised $5 million ( ₹38 crores) from Pacific Horizon Investment Trust, which is managed by UK-based Baillie Gifford & Co. Ltd. The latest fundraiser comes at a time when the company is struggling to access the $100 million from the $150 million fundraise from China’s Ant Financial.

Future of Zomato

Tiger is one of the most prominent investors in Indian startups. But if Kora completes the Zomato deal, it'll be its maiden bet on an Indian internet firm. Last year, Kora invested $125 million in financial services conglomerate Edelweiss, marking its first bet in India.

For Zomato, the new round of financing led by the US and Singapore-based financial investors comes amid uncertainty surrounding the India strategy of its prominent backer — China’s Ant Financial.

Alibaba’s sister company, Ant, which holds 25% in the food tech, had committed to investing $150 million in January. However, Zomato has been able to access only $50 million so far.