India’s food discovery and delivery sector is gulping down huge sums of cash and the latest to digest fresh round of funding is current market stalwart Zomato. The company has eaten up a $60 Million round this time, which in the current scheme of things, doesn’t look that a big amount for a unicorn startup like Zomato.
After securing a sum of $50 million in April, this fresh cash comes in from new investors Temasek and old aider Vy Capital. This fresh round of investment will further cement Zomato’s rise in the booming food app sector. The company is likely to use the fresh stack of cash towards strengthening its delivery, payments, table reservations and other divisions.
Zomato is currently valued at little more than a billion dollars. This new round of investment takes the company’s tally to over $220 million. Major VC firms like Sequoia India and Info Edge have backed Zomato’s ground plan for success by acquiring a part of the company’s share.
The company boasts of over 1.4 million restaurants in its armory spanning close to 22 countries. Zomato’s vertical integration has also seen a positive trend as the company managed to acquire Urbanspoon, later shutting the service down completely. Zomato claims that over 90 million users pay a visit to its site every month.
Zomato CEO and co-founder Deepinder Goyal stated that
We will use this round to make investments in our new businesses such as online ordering, table reservations, point of sales, and our newly launched Whitelabel platform. With this round, and with some of our markets turning profitable recently, Zomato is well capitalised for at least two years. We are also stoked to have Temasek partner with us, and are looking forward to building one of the largest food-tech companies in the world.
Zomato is planning to do just that as it is introducing it services into Australia and South Africa later this month. Zomato also has its own payment service which the company is soon going to launch in countries other than India, where a two factor authentication is validated.
Logistics is also a domain most startups find a tough territory to conquer. Zomato has taken up this challenge and has announced its plan of investing into logistics and delivery.
Zomato has been a market leader, that has set new trends for its competitors like TastyKhana to match up to. Its other noteworthy compettion comes from Sequoia backed Tiny Owl which has also been receiving healthy sums of money, the latest being a $16 million funding revieved in February this year.