One of the largest travel booking service in China, Ctrip might be investing in the food delivery service, Zomato reports the Times of India. This investment will come as a part of an investment round that can increase up to $400 million and this was revealed to the publication by their sources. Ctrip might be investing $100 million in the food delivery service.
Ctrip Funding Beneficial For Zomato
For this investment round, Ctrip will be funding Zomato along with its existing investor – Ant Financial which is an affiliate of Ali Baba and some others. “The discussions with Ctrip are in the last leg, with only the final amount yet to be decided,” an anonymous source told the Times of India. “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 publication that the deal can close within two weeks.
The deal can prove to be a big win for Zomato who is in competition 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 the Times of India. “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.”