As Swiggy Enters Unicorn Club, Zomato Readies For Foodtech War By Seeking $400 Mn In Funding
Soon after Swiggy raised $210 Mn fundingand marks its entry to the Unicorn club, foodtech major Zomato is now reportedly in talks to raise $400 Mn funding.
According to the reports, Zomato is in talks with existing investors Ant Financial and Temasek, at a valuation of around $2 Bn.
Further, it is being suggested that the company is also in talks withAlibaba Group for the existing funding round that can value the company anywhere from $1.6-$2 Bn pre-money.
An email query sent to Zomato didn’t elicit any response till the time of publication.
Zomato Vs Swiggy: Tug Of War
Along with continuous additions to itsportfolio of serviceswith Swiggy Access, Capital Assist, Swiggy POP, Swiggy Scheduledetc, foodtech major Swiggy has been attracting a lot of attention from the investors too.
With its recent funding round, the company is speculated to have joined theunicorn club at a valuation of $1.3 Bnbringing onboardnew investors like DST Global and Coatue Management.
While Zomato had become a unicorn quite some time back, the company had seen a45% year-on-year growthon a revenue of $74 Mn in FY 18.
The company is also aggressively focussing on itsZomato Gold service, where it partners with restaurants to offer deals like 2+2 on drinks and 1+1 on food and has partnered with 2,000 restaurants. The Gold subscription, launched in November last year, and priced at INR 1,899 for a year, has over 150K subscribers.
The unicorn recorded$11 Mn operating burn in FY18, in comparison to $15 Mn in FY17.
Headquartered in Bengaluru,Swiggy has raised a total of $465 Mn in fundingtill date. By contrast,Zomato has secured around $444 Mn in fundingso far.
According to astudyby Netscribes Research, theonline food delivery segment in India is expected to expand by 34%-36% between 2015 and 2020.
As the food delivery segment witnesses increasing competition with the entry of global players like UberEATS and Google Areo, Zomato and Swiggy continue to wage war for larger customer acquisition.