Indian food tech giant Zomato has secured fresh investment from Tiger Global Management, amounting to $102.5 million at a valuation of $3.4 billion, as reported by Entrackr.

However, recent valuations by analysts at HSBC had placed the startup at a higher $5 billion valuation.

With this latest funding injection, Zomato has amassed over $319.5 million in total investments throughout 2020. While an official statement from Zomato is yet to be released, the funding arrives at a critical juncture for the company, amidst operational challenges posed by the ongoing coronavirus pandemic.

Zomato’s 2020 Fundraising Journey During the first quarter of FY21, Zomato encountered significant hurdles as most restaurants remained shuttered, operating solely on a takeaway basis. Despite these challenges, Zomato reported a revenue of $41 million and a loss of $12 million. Deepinder Goyal, CEO of Zomato, addressed the impact of the pandemic on the business, acknowledging a setback of approximately a year. Nonetheless, Goyal remains optimistic, emphasizing the long-term vision of building a resilient company.

In response to the pandemic’s economic strain, Zomato was compelled to downsize its workforce, resulting in the layoff of 1300 employees. Goyal expressed concerns regarding the potential closure of 40% of partner restaurants due to the pandemic’s adverse effects.

Beyond addressing immediate challenges, the fresh funding injection positions Zomato to intensify its competitive stance against domestic rival Swiggy and emerging entrants like Amazon, vying for dominance in the fiercely competitive food delivery market.

As Zomato navigates through the complexities of the pandemic-stricken landscape, strategic investments play a crucial role in fortifying its market position and sustaining growth momentum amidst evolving consumer preferences and market dynamics.