Zomato raises Rs 227 crore in latest funding round

Written By Unknown on Rabu, 06 November 2013 | 21.43

BANGALORE: Online food and restaurant listings platform Zomato has raised Rs 227.6 crore from Sequoia Capital and existing investor InfoEdge, making it as one of the largest funding in the sector till date. BSE-listed InfoEdge, which owns the portal Naukri.com, remains the largest shareholder in the company with just over 50% stake. The founders shareholding is now being reduced to a minority diluted in favour of Sequoia.

Started in 2008 by IIT Delhi college-mates Deepinder Goyal, 30 and Pankaj Chaddah, 27, the company has till date raised about $53 million since its inception, including this round. In a statement to BSE, InfoEdge informed that its shareholding in Zomato Media Private Limited stands at 50.1%.

Zomato intends to use the money for international expansion. "It's a very people intensive business. We intend to use the capital for expansion and hiring of people in about 22 overseas markets such as Brazil,Turkey, Indonesia and parts of Europe. Each country's subsidiary will get allocated a separate fund from now on," says Deepinder Goyal, 30, and founder CEO of Zomato.com.

Zomato had previously earlier raised about $16.5 million (Rs 100 crore) from InfoEdge over four rounds of funding. Zomato which expects to earn about Rs 36 crore ($6 million), in annual revenue this year, spends about 70% of its expenditure as staff costs.

"Zomato is the first Indian consumer internet company to build a significant international footprint, and we have made this investment because of our strong conviction in the founders, the world-class product they've built, and their ambitious global vision," said Mohit Bhatnagar, managing director at Sequoia Capital India Advisors.


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