Categories: Business

Zomato loses access to $ 100 million funding from Chinese investor



new Delhi. Funding released by Chinese investors to food delivery startup Zomato has stalled. This news has been revealed by quoting sources. According to a media report, Zomato has not received funding of about $ 100 million from the startup's largest Chinese investor Ant Financial. According to the report, the Indian government's toughness on investment from neighboring countries has had an impact on funding.

In January itself, Zomato reported that it had raised $ 150 million from Alibaba Group's company Ant Financial. Which is a part of its big investment plan. The Chinese investor has so far invested $ 56 million in Zomato, while it has 25 percent in the startup.

In April this year, the Government of India has made the government's approval necessary for all the investments coming from such countries whose border with India. According to the government, this strictness has been done because it does not want the companies of the country to be deliberately captured by the neighboring countries with the wrong motive. Especially due to the weak economic situation of companies due to Corona crisis, the possibilities of such takeovers have increased. These countries include China, Bangladesh, Pakistan, Bhutan, Nepal, Myanmar and Afghanistan.

According to the report, due to the new rule, new funding to Zomato by Chinese investors will first have to get permission from the government, although the report says that Zomato remains optimistic about the funding.

This post was published on July 5, 2020 7:25 pm

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