Zomato, one of the leading food-tech startups in India, has received another $210 million funding from Ant Financial — Alibaba’s payment affiliate. This was revealed when Info Edge, an investor in Zomato, filed documents with RoC suggesting that it’s ownership in Zomato will fall from 30.91% to 27.68% as a result of infusion of new capital from Alipay Singapore Holding or other affiliates of Ant Financial.
The funding will be used by the company to ramp up spending for the battle of Indian food-tech market leadership against its biggest rival Swiggy.
The investment, which is reportedly for a bit over 10% stake, values the food-tech startup at around $2 billion. The new funding comes after the company raised around $150 million earlier this year from Ant Financial at a valuation of about $1.1 billion.
Last month, Ant Financial had secured the right to become the largest shareholder in Zomato as a part of that investment round. It held around 20-22% stake in Zomato and with the new investment, it could be the largest shareholder of the company or close to Info Edge’s equity.
Swiggy is also reportedly in talks with Tencent and other existing investors for a new funding round worth around $400 million, at a valuation of around $2.5-3 billion. According to the reports, both companies — Zomato and Swiggy — have been in talks with SoftBank Vision Fund, but no deal has materialised so far.