Equity research firm Nomura Financial Advisory and Securities India on Friday raised online restaurant discovery and food delivery firm Zomato’s valuation to $1.4 billion in its latest report, from $1 billion. The increase in valuation is based on the last fund exercise taken up by the company in September 2015. Zomato had raised $60 million from Singapore’s Temasek Holdings and existing investor Vy Capital.
In its report, Nomura said, “Zomato is a globally scalable business, which utilises the network effects of its restaurant discovery platform, enabling monetisation in food ordering at low customer acquisition costs.”
The equity research firm in the report further stated that it estimates Zomato revenues could grow 6.5 times to more than $300 million over FY17-22. As per the report, the growth in revenue will be driven by 4.5 times jump in the company’s advertising revenue which is expected to touch $38 million in FY17, besides a 15 times spurt in revenue of its food ordering business at $9 million in the same period.