Ctrip likely to join $400m funding round for India’s food delivery firm Zomato

Source:Global Times Published: 2018/9/10 21:48:39

Chinese online travel services provider Ctrip is likely to join Indian food delivery service Zomato's financing round with a possible investment of about $100 million, said indiatimes.com on Monday. An expert said that if the deal goes through, it could be a good example for Chinese investment in overseas retail and services in India.

"Ctrip will be joined by Zomato's existing backers Ant Financial, an Alibaba affiliate, and a couple of new financial investors," said the report, citing two people familiar with the matter.

"The discussions with Ctrip are in the last stage, with only the final amount yet to be decided," one of the sources said.

Ctrip declined to comment when reached by the Global Times on Monday.

"This deal could potentially be a good example for such cases in the future," Zhao Gancheng, director of the Center for Asia-Pacific Studies at the Shanghai Institute for International Studies, told the Global Times on Monday.

"Zomato is in the Indian retail and services sector, where Chinese companies have not actively invested . If the deal goes through, it could be a good example," said Zhao.

"But it's necessary to be prudent, given that most Chinese companies are not familiar with the laws, markets and policies" in India, Zhao warned. "There are too many unpredictable factors."

India is keen for Chinese investment, and if this deal goes well, it will be conductive to bilateral business ties, the expert said.

Posted in: COMPANIES

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