India’s Zomato Set to Raise $146m in Final Funding Push Before IPO

India’s Zomato Set to Raise 6m in Final Funding Push Before IPO

Food tech unicorn Zomato, which is gearing up for a public listing in the first-half of 2021, is set to raise a little over $146.5 million as part of its ongoing Series J round of funding, in a final funding push before it starts preparation for an Initial Public Offering (IPO).

The Gurugram-based food tech major has already raised another ₹37.9 crores (or $5.1 million) from Pacific Horizon Investment Trust, which is managed by UK-based Baillie Gifford & Co. Ltd., regulatory filings sourced from business intelligence platform Tofler showed.

Zomato’s ongoing round will see the likes of Mirae Asset-Naver Asia Growth Fund, Steadview Capital, hedge-fund Luxor Capital Partners, Lugard Road Capital and ASP India LP pump in additional capital, in the coming weeks.

Zomato is looking to issue 34,873 Class J7 Compulsorily Convertible Cumulative Preference Shares (CCPS) to the above-quoted investors, at an expected issue price of ₹3,00,235 per share, garnering close to ₹1047 crores (or $141 million) in funding, regulatory documents show.

In a bid to bolster its cash reserves, the foodtech unicorn has been on a fundraising spree, over the past months, cornering a little more than $270 million in investments, alone this year, from key investors – Tiger Global Management; Temasek, through MacRitchie Investments, Ant Financial and others.

The development of Zomato’s recent fundraise was first reported by news portal Entrackr.

Mint reported on Thursday that Zomato has appointed Kotak Mahindra Bank as merchant banker and Cyril Amarchand Mangaldas and Indus Law as legal advisors.

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