India’s food delivery app Zomato is reportedly expected to secure $600m in a new round of funding to be led by Chinese investor Ant Financial.
Sources familiar with the development were quoted by Economic Times as saying that if Ant Financial leads the round it will become the largest shareholder in Zomato with up to 29% stake.
Ant Financial is a subsidiary of Alibaba and has been supporting Zomato since February 2018 when it bought 14.7% stake.
Zomato spokesperson told the Economic Times in an email: “We are raising a round to fuel our ambitions in food delivery, dining out and sustainability. However, at this stage we cannot disclose any further details.”
The company offers food delivery service in over 500 cities across India. It works with more than 200k delivery partners.
Earlier this month, Zomato reported the number of restaurant listings globally on its app grew from 1.2m to 1.5m.
The company’s table reservations increased from 800k booked covers this January to more than 1.3m last month.
Commenting on the development, a person with knowledge about the talks was quoted by the publication as saying: “While Ant Financial is leading the round and pumping in about $200m, the rest of the capital is coming from existing backers like Temasek and others. A bunch of hedge funds may pool in about $150-200m as well.”