Online restaurant and events guide Zomato has raised Rs 227.6 crore ($37 million) in its Series D investment from Sequoia Capital and existing investor Info Edge.
Of this, Info Edge has invested Rs 57 crore while the remaining is from Sequoia Capital. The company plans to use the investment raised to expand to 22 countries across Europe, South-East Asia, Australia and the Americas over the next two years.
Last week, Info Edge had mentioned this investment round in its earnings call and had indicated this will be a big investment. Info Edge Vice-Chairman Sanjeev Bikhchandani said that getting an new investor in depends “on the size of the raise, and the size of our balance sheet. If the raise is going to be large, we would like to get someone alongside us. We will be probably diluted from our stake, but this is still under negotiation, but we are likely to stay majority”.
While Info Edge still owns a majority stake in Zomato following this investment, its stake has reduced to 50.1% from 57.9%, it had during the previous investment round.
With this investment, Zomato has raised a total Rs 313.6 crore across five rounds, which includes Info Edge’s investment of Rs 143 crore. Prior to this, Zomato had raised Rs 55 crore in Feb 2013, Rs 12.86 crore in September 2012, Rs 13.5 crore in September 2011 and Rs 4.7 crore in 2010.
Expansion To 3 New Markets
Coinciding with this investment, Zomato has expanded its operations to three new countries – Brazil (Sao Paulo), Turkey (Istanbul & Ankara) and Indonesia (Jakarta). The company mentioned the site will also be available in the respective local languages – Portuguese, Turkish, and Bahasa Indonesia respectively.
In addition to this, Zomato has also strengthened its presence in the UK to five cities, by expanding to Glasgow and Edinburgh. Overall, Zomato claims to offer listings from over 160,000 restaurants across 11 countries including India, New Zealand, Philippines, Qatar, Sri Lanka, South Africa, UAE, United Kingdom, Brazil, Turkey and Indonesia.
Earlier in March 2013, Zomato had introduced a new catering section in Delhi NCR and extended the section to Mumbai and Bangalore in September 2013. It had also rolled a redesigned version of its website, bringing in new features like reformatted search results, threaded comments and others.
– Chart: Zomato Ad Revenues vs Event Ticketing Revenues For FY13
– Zomato In FY13: Rs 11.38 Crore Operating Revenues, Rs 10 Crore Operating EBITDA Loss
– Info Edge Invests Rs 55Cr In Zomato; Has 57.9% Stake; India EBITDA Break Even