Zomato intended to close the $500 million round of funding

Zomato’s online food distribution platform is closing a new $500 million investment in what is generally known as a pre-IPO financing round, valuing the company at around $5.5 billion, said two individuals in the know.

In the midst of increased geopolitical tensions between India and China, the new fundraise, consisting of 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.

Zomato is an online food delivery service that connects with other hotels and offers food delivery services door-to-door. In the year 2008, IIT graduates Deepinder Goyal and Pankaj Chaddah started the business. The startup offers a search app that provides detailed information about restaurants that allows customers to find, rate, and review restaurants, as well as create their own private network of trusted foodies recommendations. Zomato links over 55 million users to restaurants in 24 nations.

In the latest financing round, established investors Tiger Global, Kora Investments, Steadview, Fidelity, Bow Wave, Vy Capital, along with new entrant Dragoneer Investment Group, participated, said a person who was aware of the development who did not want to be identified as the discussions were private.

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 familiar with the company’s goings-on.