Foodtech unicorn Zomato has raised $52 million from US-based Kora Investments, continuing efforts to bolster its cash reserves at a time when the food delivery sector is rebounding from the ravages of the Covid-19 pandemic.
The capital was raised as part of an ongoing round that is expected to raise as much as $600 million. It has seen Zomato raise more than $270 million so far this year. In September, Zomato closed a $62 million funding from MacRitchie Investments, a unit of Singapore’s Temasek, and an additional $103 million from US-based hedge fund Tiger Global.
Kora is expected to make a follow-up investment of a larger amount in Zomato in the coming months, said a person aware of the talks. The person did not disclose the size of the next investment. “Zomato’s current fundraising strategy is to woo more hedge funds for possible investments. Its plan on going public is making it an attractive proposition for these funds since they see faster exits. But whether the foodtech will be able to justify its valuation in the public markets is yet to be seen...hence, investors are taking a moderate approach,” said the person cited above, who didn’t want to be named.