Online food and nightlife guide Zomato has received a further investment of INR 55 Crore from Info Edge (India) Ltd. Prior to this round Info Edge had invested INR 31 Crore in Zomato over three rounds. As per the BSE filing, the fresh investment has been made through ordinary shares of Zomato Media Pvt. Ltd.
Commenting on this Info Edge Founder & Executive Vice Chairman Sanjeev Bikhchandani said,”Zomato is fast emerging as one of the finest Indian consumer internet businesses. It has a great team, a great brand, a super user experience, a dominant market share, an excellent revenue scale up with a known path to profit and a global opportunity. When the founders invited us to invest in the next round we were delighted to grab the opportunity. We are excited to partner with Zomato to build up the company further.”
Zomato will be utilizing the investment to strengthen its market share in its existing markets while continuing to scale sales operations in its dominant markets – India and UAE. Besides this Zomato is also planning an entry into the Philippines and South Africa in the next few months.
Deepinder Goyal, Founder & CEO of Zomato said, “We plan to use these additional funds for product development, scaling up our sales team in various locations, and further international expansion. India is already a profitable business for us, and our UAE business is very close to breaking even. Info Edge has been a great partner for us – we are excited about deepening this relationship with an aim to build a global internet business out of India.”
Founded in 2008, Zomato currently operates in 5 countries: India, United Kingdom, UAE, Sri Lanka, and Qatar with plans for further international expansion. In India, the operations span 13 cities. The website and mobile app provide in-depth information (menu, contact details, pictures, directions, ratings and reviews) for over 75,000 restaurants across 19 cities in 5 countries.
Zomato has a dominant traffic share in India with an estimated 70% traffic share. Its mobile app is one of the most popular apps in India with over a million downloads across different platforms. More than 50% of Zomato’s traffic comes from its app.