Zomato may lose $100 mn funding from its Chinese investor: Report

Ant Financial has invested close to $560 million in Zomato, giving it a stake of more than 25 percent in the company.
  • Nusra Deputy Features Editor
Zomato

Gurgaon-based food delivery player Zomato has been unable to access around $100 million from Ant Financial, its biggest Chinese investor, in a first major example of the impact of India’s new foreign investment laws, reported The Financial Times.

Earlier this year, the food delivery platform had raised $150 million (over Rs 1,065 crore) from existing investor Alibaba-affiliate Ant Financial, a Chinese financial giant, as part of a larger funding round.

The investment is a part of a larger funding round, announced by Zomato Founder and CEO Deepinder Goyal in December 2019. Ant Financial has invested close to $560 million in Zomato, giving it a stake of more than 25 percent in the company.

"We have raised $150 million from Ant Financial as a part of a larger round. Ant Financial has been a steadfast partner in our journey towards achieving market leadership in on-demand food delivery in India, and dining out globally," shared a Zomato spokesperson earlier this year.

In April, the government of India made its prior approval mandatory for foreign investments from countries that share land borders with India to curb "opportunistic takeovers" of domestic firms following the COVID-19 pandemic.

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