NEW DELHI|BENGALURU: Singapore’s Temasek is in discussions with Zomato to pump in as a lot as $100 million into the net meals supply main, in line with people conscious of the developments, at a time when a beforehand introduced funding by Ant Monetary has been delayed because of the present anti-China sentiment and new overseas direct funding (FDI) guidelines.

An current Zomato backer, Temasek’s potential funding is a component of a bigger funding spherical that the Gurgaon-based firm has been negotiating because the finish of final yr.

The discussions between the events are nonetheless ongoing, in line with two sources conscious of the developments.

“The spherical was virtually finalised, however the phrases of the deal are being renegotiated given the influence of Covid-19 on enterprise operations, India’s funding insurance policies and aggressive panorama with Amazon’s launch (of its meals supply enterprise),” stated one of many individuals cited above. “Covid-19 has damage each the worthwhile itemizing and discovery companies in addition to the meals supply arm (of Zomato),” he stated.

The corporate’s fund-raising course of has been stuffed with challenges, together with modifications to the FDI coverage introduced in April.

Firm raised $5 million in April

The brand new coverage mandates prior authorities approval for investments by entities primarily based in international locations that share a land border with India. Ant Monetary, an affiliate of Alibaba Group Holdings, has pumped in solely $50 million – of an anticipated $150 million – into Zomato, in line with BSE and NSE-listed Data Edge, additionally an early investor within the firm. Hangzhou-headquartered Ant Monetary is the most important institutional stakeholder in Zomato, holding a 26% stake within the firm.

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Temasek, which first invested in Zomato in 2015, has at all times been within the combine to pump in additional capital. It holds a 3% stake, having invested Rs 310 crore into the corporate, in line with knowledge collated by Tracxn. The Deepinder Goyal-led firm was valued at $3 billion in January. The valuation was, nevertheless, contingent on Ant fulfilling its dedication.

When contacted by ET, a Zomato spokesperson declined to remark. Temasek didn’t reply to queries.

In April, Zomato raised $5 million from Pacific Horizon Funding Belief, a fund managed by British funding supervisor Baillie Gifford, as part of its ongoing spherical.