AAA Zomato targets $100m after Urbanspoon acquisition

Zomato targets $100m after Urbanspoon acquisition

Zomato, the India-based restaurant search engine backed by e-commerce company Info Edge, is in the process of raising $100m as it seeks to expand geographically, Reuters reported yesterday.

Zomato raised $60m from Info Edge, Vy Capital and Sequoia Capital at a $600m valuation in November. The series E round, through which Info Edge took a majority stake in Zomato, took the company’s total funding to about $115m since it was founded in 2008.

News of the latest funding emerged as Zomato agreed to acquire Urbanspoon, a US-based competitor owned by internet holding company IAC, for a price said to be between $50m and $60m.

Deepinder Goyal, chief executive of Zomato, told Reuters: “It is an all cash deal. We pretty much had to spend all our last round of funding on this and it is sort of a big deal for us.”

Zomato provides an online restaurant listings, menu and reviews service. The deal will provide it with an entry route into the US, Canadian and Australian markets, taking the number of markets in which it operates to 22.

The series F funding, which Goval expects to close in the next 30 days, is set to increase Zomato’s overall value to more than $1bn.

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