Zomato raises $200M from Ant Financial

Indian online food delivery startup Zomato has raised $200 million in a funding round led by Alibaba Group. The funding round was led by Ant Small and Micro Financial Services Group, a subsidiary of Alibaba Group. The fundraising is expected to be completed by April.

The funding includes a $50 million secondary share sale by Zomato’s key shareholder Info Edge (India) Ltd to Ant Financials, which will dilute its stake in Zomato to about 30.91 percent post the fresh capital infusion. Before the share sale Info Edge owned about 44.74 percent stake in Zomato. The deal values Zomato at $1.1 billion with a pre-money valuation of $945 million.

Zomato strong presence in South East Asia and the Middle East has been crucial in finalizing the deal with Ant Financial which is looking to forge a strong global play through this fundraising.

It was earlier reported in September that the Gurgaon based food delivery startup was in talks to raise $200 million with Ant Financial and Alibaba.

Zomato, founded in 2008, has raised roughly $225 million in capital. It last received fresh capital in September 2015, when it raised $60 million from Singapore’s Temasek Holdings and Vy Capital. Sequoia Capital and Info Edge are the other institutional investors in Zomato.