BENGALURU: Zomato, online restaurant discovery and delivery firm is now planning to invest in new businesses such as cloud kitchens. In the past 12 months, the company has managed to boost its revenue and cut down the burn rate. Moving ahead of the feat, the Gurugram-based company is now working towards raising a new funding round.
Reports from two sources familiar with the development process states that Morgan Stanely, the global investment bank is all set to raise the new financial round for Zomato; supporting this new initiative. Although specific details about the investment are still unknown, it can be expected to be greater than the previous $60 million investment raised by the firm in September 2015.
In a recent interview, Deepinder Goyal, CEO of Zomato says, “Investor interest in the last 2-3 months has been very high. We were planning to start fundraising in March-April next year, but given the inbound interest, it made sense to start now.”
Looking forward, Zomato plans to use half of the investment for the food delivery business, and the other half for the expansion of new business processes such as table reservations and special deals offered by restaurants. The company also plans to launch cloud kitchens for the delivery business. Ignoring fixed costs, the process of cloud kitchen involves leasing space and inviting the restaurants to set up a kitchen.
Considering the current situation, Zomato is processing about 1.5-million orders a month along with a growth of 20 pct every month.
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