Growth equity firm Glade Brook Capital invests $40 Mn in Zomato

SA TeamFebruary 6, 2019

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Key Highlights

Zomato has picked up around $40 Million fund from US-based investor Grade Brook Capital Partners.

Zomato has issued 13,000 class 1 preference shares to Glean Brook on February 5.

Zomato is planning to sell its UAE business to Berlin-based food tech major Delivery Hero. The deal is going to finalize in approx $200-250 million.

Foodtech and online food delivery services are enhancing in India at a great pace. Revolution in food Industry has occurred since past years by setting up of food delivery giants Zomato and Swiggy. Now Foodtech war between food delivery unicorns is enhancing in great pace because offshore funding is coming in lavish amount. Recently Zomato has picked up around $40 Million funds from US-based investor Grade Brook Capital Partners.

According to data intelligence platform paper, “Zomato issued 13,000 class 1 preference shares to Glean Brook on February 5. The fund infusion valued the Gurugram Based food Unicorn at about $2 Billion and comes at a time when Zomato is negotiating a bigger round of up to $10 Billion.” This investment is part of its series 1 financing round.

Glade Brook Capital has made some major investments in global tech companies like Uber, Airbnb, and Alibaba.

Zomato has raised around $600 million in funding so far. The company has raised $210 Million in October by Ant Financial. The company is also in discussions with Chinese private equity major Primavera Capital and Ant Financial along with other investors for raising their funds globally. Zomato has appointed Goldman Sachs to solve the issue of fundraising campaign because it doesn’t want Ant Financial to gain any more stack of it.

Zomato is planning to sell its UAE business to Berlin-based food tech major Delivery Hero. The deal is going to finalize in approx $200-250 million.

Swiggy and Zomato are in great competition for raising funds. In the same chain Swiggy has raised $1 billion in December 2018 from South African internet and media group, Naspers that valued the firm at a rate of $3.3 Billion.

A huge amount of capital is being poured into food delivery firms. This has led to the expansion of business at great velocity. According to Kotak Institutional Equities (KIE) estimates, “Now online orders have attained high parapet, 65 million from 15 million in March 2018.” This growth is dedicated to Swiggy and Zomato. The report also added that revenue of Zomato is 139.9 crores in FY18. Stay connected with us for latest updates!