Zomato is raising $150 million from Alibaba’s Ant Financial. Over and above this, Ant Financial is buying another 6.66% stake (around 32,629 shares) of Zomato from Info Edge for $50 million, taking the total expenditure for Ant Financial in this deal to $200 million. Zomato had reported a turnover of Rs 3322.72 crors in FY17, and in September, had announced that it is profitable throughout the 24 countries it operates, across all its businesses. It’s not clear whether it has continued to remain profitable.

Following the sale and the fund-raising by Zomato, Info Edge’s stake has reduced to 30.91% (on a fully converted and diluted basis), from 44.74% prior to the sale.

Effectively, this is a warchest for Zomato to gain greater dominance in the Food+Tech space in India, where it competes with the likes of Naspers backed Swiggy, which had raised $80 million last year Ola owned FoodPanda and maybe even UberEATS. Note that Ant Financial also has investments in Paytm and its affiliate businesses, which are increasing making more of a horizontal play by entering markets such as movie and travel ticketing; there are potential synergies there for Zomato for user acquisition, but you can’t be sure whether Paytm will compete or collaborate here. Probably compete.