Food delivery firm Zomato has raised over Rs 379 crore ($52 million) from US-based investment firm Kora Investments. The infusion happened through Kora Investments I LLC, a company incorporated under the laws of Cayman Islands, according to the documents filed by Zomato, which were sourced from business intelligence platform Tofler.
Gurugram-based Zomato has allotted 12,656 Class J5-1 compulsorily convertible cumulative preference shares at an issue price of Rs 3,00,235 per share to Kora. The infusion is part of the ongoing round of funding. Zomato which competes with Bengaluru-based Swiggy is in talks with investors to raise almost $600 million.
“The board of the directors of the company in their meeting held on October 6, 2020, had approved the issuance of 12,656 Class J5-1 CCPS to Kora,” said the document.
The Covid-19 pandemic has accelerated Zomato’s journey to profitability. The firm’s food delivery volumes have touched pre-Covid-19 peaks. Zomato founder and chief executive officer (CEO) Deepinder Goyal recently said a number of cities are now at over 120 per cent of pre-Covid peaks. He said since the end of March, Zomato had delivered a total of 92 million orders.
Goyal, in an email to employees, recently said the firm was planning an IPO next year. He said the firm had about $250 million cash in the bank, the highest in its history. Marquee investors such as Tiger Global, Temasek, Baillie Gifford and Ant Financial have participated in its current round, which, he estimates, will take its cash in the bank to $600 million.