The Gurugram-based food tech major has already raised another ₹37.9 crores (or $5.1 million) from Pacific Horizon Investment Trust, which is managed by UK-based Baillie Gifford & Co. Ltd., regulatory filings sourced from business intelligence platform Tofler showed.
In March, Pacific Horizon Investment Trust had pumped in $5 million in the food tech major.
Zomato’s ongoing round will see the likes of Mirae Asset-Naver Asia Growth Fund, Steadview Capital, hedge-fund Luxor Capital Partners, Lugard Road Capital and ASP India LP pump in additional capital, in the coming weeks.
Zomato is looking to issue 34,873 Class J7 Compulsorily Convertible Cumulative Preference Shares (CCPS) to the above-quoted investors, at an expected issue price of ₹3,00,235 per share, garnering close to ₹1047 crores (or $141 million) in funding, regulatory documents show.
In a bid to bolster its cash reserves, the foodtech unicorn has been on a fundraising spree, over the past months, cornering a little more than $270 million in investments, alone this year, from key investors – Tiger Global Management; Temasek, through MacRitchie Investments, Ant Financial and others.
The development of Zomato’s recent fundraise was first reported by news portal Entrackr.
Mint reported on Thursday that Zomato has appointed Kotak Mahindra Bank as merchant banker and Cyril Amarchand Mangaldas and Indus Law as legal advisors.
In October, Zomato made changes to its leadership team, elevating Akshant Goyal as chief financial officer (CFO), as it continues to give its employees exits through secondary share sale transactions. Akriti Chopra, who was earlier CFO and led fundraising will now be responsible for people development for the organisation.
Zomato currently holds a valuation of $3.3 billion, as per its last funding round from Kora Investments, in October, which infused close to $52 million in the startup.
As Zomato looks to go public, losses for the firm haven’t seen any significant improvement. Although Zomato doubled its revenue to $394 million in 2019-20, losses also marginally increased to $293 million from $277 million in 2018-19.
Analysts however said the losses wouldn’t impact Zomato’s IPO aspirations.
The article was first published on livemint.com.
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