Online food delivery and restaurant discovery firm Zomato has raised around $40 million from US-based Glade Brook Private Investors, according to documents filed with the Registrar of Companies (ROC) and sourced from data intelligence firm PaperVC.
The company is said to be in talks to raise a larger round of funds of around $1 billion to up its ante against rivals such as Swiggy that recently bagged $1 billion from existing investor Naspers and others.
This deal was signed on February 5 and could be a part of the expected larger round. The company did not immediately respond to queries.
Zomato is reportedly also in discussions with Chinese private equity major Primavera Capital, existing backer Ant Financial and other investors for the new round of funding.
Rival Swiggy’s recent $1-billion funding round has created a huge barrier to entry for other players in the market and gives fresh impetus to Swiggy’s bid to maintain its position at the top.
With the new funding, Zomato will be trying to break that barrier in the capital guzzling food-tech market. Zomato last raised $210 million from Alibaba’s payment affiliate Ant Financial in October.