Gurgaon-based restaurant discovery and food delivery platform Zomato has shot up its valuation to US $2.5 billion, according to a report by wall street giant Morgan Stanley’s research arm. The coverage on Zomato by Morgan Stanley was done while taking stock of the startup’s publicly traded shareholder Info Edge, which runs portals like Naukri.com and 99acres.com.

The valuation report comes at time when Zomato is in advanced talks to raise up to $200 million from Alibaba and its payments affiliate Ant Financial, also known as Alipay.

According to the report in Economic Times, this estimate is three times more than Zomato’s valuation in its last funding round. Moreover, the fresh valuation has made Zomato to outrun other billion-dollar startups in India like Snapdeal, Quikr and Shopclues.

At the consolidated level, Zomato will clock $1.3 billion in revenue, including the delivery fee, and register 27% ebitda margins, the Morgan Stanley report said.

The report also comes at time when the food delivery segment in India is heating up with new players like UberEats, Ola’s acquisition, for which Ola has committed to invest additional $200 million, to get the slice of food delivery business in India. And now, British food delivery unicorn startup Deliveroo entering the Indian market as well.

There were also reports in November last year of a merger between Zomato and Swiggy. Although, now Swiggy is expected to raise about $100 million from South Africa’s Naspers.

In September 2017, Zomato had acquired Runnr, an on-demand logistics and food delivery startup, and in the same month also invested in home-cooked meal delivery startup TinMen. All this to get hold of food delivery market of India, inorganic way.

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