India's Zomato raises $160 million from Tiger Global, Temasek unit

BENGALURU (Reuters) – Indian food delivery company Zomato has raised $160 million from U.S. hedge fund Tiger Global Management LLC and a unit of Singapore’s Temasek Holdings, its top shareholder Info Edge (India) Ltd (INED.NS) said in a filing on Thursday.

The transaction pegs the food delivery startup at a post-money valuation of $3.3 billion, according to the filing here

The primary fundraiser consists of $100 million from Tiger Global and $60 million from MacRitchie Investments Pte, a subsidiary of Temasek Holdings.

Info Edge said its effective stake on a fully diluted basis in Zomato now stands at 22.2%.

The funding comes at a time when Zomato, one of India’s most prominent startups, tries to reinvent parts of its business as it grapples with the economic fallout from the COVID-19 pandemic.

The Gurugram-headquartered firm in May announced some temporary pay cuts and said it would lay off 13% of its workforce due to the impact of pandemic-led lockdowns.

Earlier in the day, Indian newspaper Economic Times reported that Zomato plans to go public by the first half of 2021, citing an email from the company’s chief executive officer to its employees.

Zomato did not immediately respond to a Reuters request for comment on its plans to go public.

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