Indian food delivery startup Zomato has raised a $62 million financing round from Singapore’s state investment arm Temasek Holdings. According to the Economic Times, the transaction was made from Temasek unit MacRitchie Investments, which is an existing investor in the food delivery service. The round values Zomato at about $3 billion.
It also comes after several months of ups and downs for the food delivery service. In March, it bought Uber Eats’ India business for $206 million, and raised a $5 million Series J round in April. Also in April, Zomato unveiled its grocery delivery service as a way of diversifying its business model.
However, the company also had to cut 13 percent of its workforce in May in response to the ongoing pandemic and the many restaurants across India that have had to shut down permanently because of it. (Chief rival Swiggy also made cuts to staff in response to COVID-19.)
Things appear to be looking up for the Indian food delivery market, though. Online food delivery has recovered about 80 percent of its pre-pandemic sales, according to Economic Times. A blog post from Zomato itself notes that “the number of restaurants offering food delivery are at 70% of pre-COVID levels.” The company also says that “recovery trends are strong.”
Also in India this week, Dunzo, a startup that delivers everything from restaurant meals to groceries to household supplies, announced it had raised $28 million.
This latest investment for Zomato comes as the company is struggling to receive two-thirds of its $150 million investment from China’s Ant Financial due to regulatory changes with investors in China.