Zomato is raising $150mn from Antfin, an existing shareholder. Post this, Zomato’s valuation will be $3bn, 15% higher than current valuation estimate of $2.6 bn. Upon completion, Info Edge's stake in Zomato will reduce to 25.1% (from 26.4%).

Capital raise to help Zomato compete better with Swiggy.

Swiggy had raised US$800 mn last year, (Swiggy has raised a total of US$1.5 bn in capital, almost 2x that of Zomato before announcement). In addition, competitive intensity in India's food delivery market has been coming down, with Foodpanda shutting operations in early 2019 (Livemint, May 2019), and press reports indicating Uber Eats is likely to sell its India business to Zomato (Economic Times, December 2019).

Disclaimer: The above report is compiled from information available on public platforms. inChat team advises users to check with certified experts before taking any investment decisions.

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