SINGAPORE: Restaurant search app Zomato got a huge boost to their business by raising $60 million in funding led by Singapore based Temasek with participation from existing investor Vy Capital.
“With this round, and with some of our markets turning profitable recently, Zomato is well capitalised for at least two years,” Deepinder Goyal, Founder and CEO of Zomato, told ET.
Zomato will use the funds to make investments in its new businesses including online ordering and table reservations.
“Zomato already has the added advantage in terms of app downloads and credible ratings. Soon they will integrate this with the ordering and if the experience is seamless, it will get them way ahead of competition in much lesser time. The challenge is to develop logistics and technology to serve the delivery platform,” said an investor in the company.
Founded in 2008, Zomato has in total raised close to $225 million from Info Edge, Sequoia India, Vy Capital, and Temasek. The company is present in 22 countries and has about 3000 employees globally. Zomato had raised Rs 310 crore in April from existing investors including Info Edge and Sequoia Capital.
Over the past year, Zomato acquired seven restaurant search players in New Zealand, Poland, Czech Republic, Slovakia, Turkey and Italy. UrbanSpoon deal gave Zomato entry into more developed market like Canada, Australia and USA which would pit it against large players like US-based Yelp Inc.
