Zomato aims to close the $500 million round of pre-IPO funding

Zomato online food delivery platform is closing a new $500 million investment in what is generally perceived to be pre-IPO funding round, valuing the company at around $5.5 billion, said two people in the know.

In the midst of increased geopolitical tension between India and China, the new fundraise, which involves a combination of $250 million primary cash infusion by established backers and a similar sum by way of secondary sales of shares by Chinese investors Ant Group and Sunlight Fund, comes amid increased geopolitical tension between India and China.

In the latest funding round, established investors Tiger Global, Kora Investments, Steadview, Fidelity, Bow Wave, Vy Capital, along with new entrant Dragoneer Group, participated, said an individual knowing the development who did not want to be identified as the discussions were private.

In the year 2008, Zomato was established. Deepinder Goyal, Gaurav Gupta, and Pankaj Chaddah are the pioneers of industries such as apps, food delivery, mobile apps, reservations, restaurants, search engines, software, etc. Zomato is an online restaurant guide and food ordering platform that enables users to order meals and deliver them from restaurants.

Zomato is projected to have $1 billion in cash with the new funding as it moves closer to its stock market debut, said another person acquainted with the company’s goings-on.

“By June this year, Zomato is aiming for an IPO, valuing the company on the public market at $6-8 billion,” said a person familiar with the matter. Sources said the company has named Goldman Sachs, Morgan Stanley, Credit Suisse, and Kotak Mahindra Bank to manage its IPO operation.