Zomato last week announced the launch of Zomato Wings, a platform to connect its restaurant partners with investors. The company hopes to get 100 restaurants funded through this new platform over the next three years. In making the announcement, Zomato Founder and CEO Deepinder Goyal said: "By curating a set of restaurants and cloud-kitchens that could become rocketships if fuelled with equity capital, we hope to build the go-to platform for venture capital firms, angel investors, family offices, etc. that are looking to make private investments in restaurants and cloud kitchens." Why is Zomato launching this platform? In a blog post, Zomato reasoned that it is launching this platform because: Funding of restaurants has been scarce: It is currently "not easy for restaurants in India to raise funding through growth-focused equity investors." The company cited a Tracxn report that reveals only about 25 restaurants and cloud kitchens saw Series A or larger equity funding rounds in the last three years. Restaurants might not have the expertise to fundraise: Additionally, there are many restaurants that "may not have the expertise or focus to fundraise at the right time from the right investors," the company noted. Indirect benefit for Zomato: The company also acknowledges the indirect benefit for Zomato through this platform: "As we partner with more investors by connecting them with enterprising restaurants, more budding restaurants would use this platform for fundraising, and the platform’s flywheel would create a win-win for restaurants and investors, and by extension, for Zomato!" Will Zomato invest in deals? Notably,…
News
Restaurant owners looking for investors can now use Zomato Wings to find them
Urging investors to sign up, Zomato said it will refrain from making any deals of its own in a bid to avoid regulator scrutiny.
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
News
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
Advert
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
News
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...
News
Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...