Zomato raises $5 million from Pacific Horizon

Online food delivery platform and restaurant aggregator Zomato has raised around $5 million (Rs 38.20 crore) from Pacific Horizon Investment Trust, a fund managed by British investment management firm Baillie Gifford, the company revealed in its regulatory filings.

With this funding, the company’s valuation stands at $3.25 billion, just a little lower than its rival Swiggy at $3.6 billion, according to  Entrackr.

Prior to this, Gurugram based Zomato had raised $150 million funding at a valuation of $3 billion from existing investor Ant Financial, which is an affiliate of Chinese conglomerate Alibaba.  

After months of speculation, the Deepinder Goyal-led company recently acquired ride-hailing app Uber’s food delivery business Uber Eats India for $206 million in an all-stock deal. As part of this transaction, San Francisco-based ride-hailing major Uber got a 9.99% stake.

Recently the company also launched grocery delivery services across Delhi, Gurugram, Kerala and Punjab, to meet the high demand in the market for staples and essential food items.

Zomato’s rival Swiggy also launched Swiggy Stores in select locations in 2019 for early morning delivery of milk, grocery and fresh produce.

Pacific Horizon Investment Trust invests in companies across Asia Pacific, excluding Japan. The company, as of February 29, has allocated 8.5% of its total assets in India and holds positions in listed entities, which includes, Info Edge, an early backer of Zomato, ICICI Lombard, Quess Corp and Reliance Industries, according to its website.