1 July , 2020 Fdiindia
China FDI Scrutiny Causes Zomato to Seek Help from Singapore’s Temasek
Zomato, the foodtech giant is now eyeing Singapore based VC Temsek for funding. It has been an after effect of the rising scrutiny over Chinese investments as per the new FDI rule. The deal was near close when the terms of deals were being renegotiated, that stopped the process. Zomato is facing a crunch due to the restaurants being closed. Hence, the introduction of zomato market.
India’s current foreign Direct Investment (FDI) policies and the launch of Amazon’s food delivery platform has definitely caused the matter to complicate. Singapore’s Temasek had initiated an investment in Zomato in 2015. So far, close to about $41 Mn and also holds about 3% stake in the Gurugram based food delivery giant. Zomato CEO and cofounder had announced that the company would be raising about $500 - $ 600 Mn by January 2020.
Other than the various administrative approvals, elements from India's outskirt sharing nations — China, Pakistan, Nepal, Bangladesh and Myanmar — would require the concerned service's endorsement before establishing the speculation.
It isn't yet clear if ANT Financial will have the option to inject the sum without consent, given that the arrangement was marked in January. The Indian government prohibited 59 Chinese applications, including TikTok, UC Browser, Cam Scanner and others, while there has been pressure on government offices to just utilize Indian innovation items and administrations in their tasks.