Food aggregator Zomato set to raise funds from Temasek arm

nBENGALURU: Online food ordering platform Zomato is in the final stages of raising funds from Macritchie Investments, a unit of Singapore’s state investment arm Temasek Holdings.

According to the proposed deal, Zomato will sell 15,188 shares to Macritchie Investments, according to regulatory filings with the corporate affairs ministry reviewed by Mint. The value of Zomato’s shares was not disclosed. The potential deal may lead to an infusion of at least $60 million into the company as per its valuation in the last fundraising in January.

Zomato, whose business was severely disrupted by the Covid-19 pandemic, has added an additional subscription of ₹184.15 crore to its Foodiebay Employees ESOP trust, showed regulatory filings.

Additionally, it has received $5 million (₹38 crore) in March from Pacific Horizon Investment Trust, which is managed by Uk-based Baillie Gifford & Co. Ltd. The development was first reported by online news portal Entrackr.

In July, Mint reported that new foreign direct investment rules would pose challenges for the Gurugram-based startup to tap into the $150 million capital it raised from Ant Financial, a unit of Chinese internet giant Alibaba, in January. The fundraising had valued Zomato at 3 billion.

India imposed stricter rules around foreign investments from neighbouring countries with effect from April. The change was mainly aimed at restricting investments from China.