Online food ordering platform Delivery Hero invested $50m in India-based restaurant listings and food delivery service Zomato yesterday as part of a round that now stands at $315m according to a regulatory filing.
The filing, by classified listings operator and Zomato shareholder Info Edge, states that the Delivery Hero funding came through a $105m second tranche of the round that includes growth equity firm Glade Brook Capital, which supplied $39.7m, Shunwei Capital and Saturn Shine.
The company had already received $210m from Ant Financial, the financial services affiliate of e-commerce group Alibaba, in October 2018.
Zomato runs an online platform with 65 million monthly users that provides information, including menus, for more than 1.4 million local restaurants across 24 countries and has been building up its delivery business as an adjacent offering.
Delivery Hero provided the funding in connection with a deal that involved its Talabat Middle East Internet Services Company subsidiary acquiring Zomato’s Middle Eastern food delivery business for approximately $172m.
Deepinder Goyal, Zomato’s chief executive, said: “I am delighted to welcome Delivery Hero as a partner and shareholder and look forward to learning from their global experience to help us strengthen our fast growing India food delivery business.”
The round’s second close brings Zomato’s overall funding to about $690m, and reports in 2018 suggested it would look to raise this funding at a valuation of approximately $2bn.
Info Edge, which reportedly owns a 26.4% stake after the close of the round, was Zomato’s largest investor for years, having first backed the company with a reported $47m in 2010. It owned 57.9% of its shares as of a $10m round in 2013.
The corporate subsequently led Zomato’s $60m series E round in 2014 and took part in its $50m series F in 2015, the last time it held a majority stake. Temasek and Vy Capital led a $60m round for the company later the same year, and Sequoia Capital is also among its shareholders.
Ant Financial first invested in Zomato in March 2018 when it provided $150m in funding alongside the purchase of $50m of shares from Info Edge in a transaction that reportedly valued Zomato at $1.1bn.
