India's Zomato is raising $150 million from investor Ant Financial, an Alibaba affiliate, at a valuation of $3 billion for the food delivery startup. Zomato's top shareholder Info Edge (India) said in a filing on Friday that after the funding its stake will drop to about 25.13 percent. It had a 26.38 percent stake as of March last year.
The fund infusion comes as Zomato pushes for a bigger market share in the highly competitive Indian food delivery space in a race with rivals such as Tencent-backed Swiggy and Uber's Uber Eats. The capital is part of a larger $500 million fundraising that is likely to close in the next two months, the Economic Times newspaper reported, citing a person with knowledge of the matter.
Zomato did not immediately respond to Reuters' request for comment. The Gurugram-based restaurant aggregator recorded a loss of $294 million in the year to March compared with a loss of $12 million a year earlier as it burnt more cash in its Indian delivery business to grab new customers, unaudited figures from its annual report showed.(This story has not been edited by News18 staff and is published from a syndicated news agency feed)