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Grapevine: Zomato to close pre-IPO round; Voda mulls part-exit from Indus Towers
Photo Credit: VCCircle

Online food delivery platform Zomato is closing a fresh $500 million (about Rs 3,650 crore) investment at a valuation of $5.5 billion (about Rs 40,150 crore), according to a report in The  Economic Times, which cited two people in the know.

The pre-IPO round comprises a mix of primary cash infusion of $250 million (about Rs 1,825 crore) by existing backers and a similar amount by way of secondary share sale by Chinese investors Ant Group and Sunlight Fund.

Existing investors Tiger Global, Kora Investments, Steadview, Fidelity, Bow Wave, Vy Capital along with new entrant Dragoneer Group have participated in the latest funding round, said a person in the know.

“Zomato is aiming for an IPO by June this year, valuing the company at $6-8 billion in the public market,” another person said.

Meanwhile, Vodafone Group Plc is considering selling a small portion of its 28.12% stake in Indus Towers to inject capital into its ailing Indian telecom joint venture Vodafone Idea (Vi), The Economic Times reported, citing three people with direct knowledge of the matter.

Vi’s potential global lenders have been pressing the telco’s co-promoters — the UK telecom major and India’s Aditya Birla Group — for some capital infusion to improve their overall comfort levels.

“With the recent closure of the Infratel-Indus merger, it is definitely an available option to demonstrate the UK co-promoter’s commitment to Vi,” said another person, a senior banker familiar with the discussions.

Investment firm Oak Hill Advisors is believed to be leading a consortium including GoldenTree Asset Management, Pacific Investment Management Co., Sixth Street, Twin Point Capital and Varde Partners to provide a $2 billion (about Rs 14,600 crore) credit line to Vi.

In another development, a Warburg Pincus affiliate is set to buy mortgage financier HDFC Ltd’s stake in student housing startup Good Host Spaces Pvt. Ltd, a person familiar with the development told Mint.

In a regulatory filing on Wednesday, HDFC said it has entered into a share purchase agreement to sell its 24.48% stake in Good Host for Rs 232.81 crore (about $31.8 million). The stake sale is expected to be completed within four months once mandatory approvals are received, HDFC said.

“Warburg Pincus is buying HDFC’s stake and will also put in additional growth capital going forward,” said the person cited above.

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