Sep 10, 2018
Ctrip, one of the largest travel booking service in China might invest in the food delivery service, Zomato in India. This strategic investment shall come as a part of an expansion round that can increase up to $400 million and this was revealed to the media by their sources. Ctrip might be investing $100 million in the food delivery service.
Ctrip shall be investing in Zomato along with its existing investor – Ant Financial which is affiliated to Ali Baba and some others. “The discussions with Ctrip are in the last leg, with only the final amount yet to be decided,” said a company’s source. “While the investment is purely financial, the two companies may explore synergies, which will be more strategic in nature going forward,” added the source. The second source told the media that the deal can close within two weeks.
This will be a big GO for Zomato who is competing with Swiggy. “Zomato is still No. 2 behind Swiggy in the food delivery space, but the gap is not wide,” Satish Meena, analyst at the research firm Forrester’s told. “These players have almost doubled the payout of delivery boys, which is very critical for fulfilling the last-mile. Their fight is going to get more intense as they look to hit new order volume numbers and raise more cash from investors.”