India’s Zomato teams up with InCred to offer credit to restaurant partners

Indian food delivery platform Zomato announced that it has entered a strategic partnership with fintech lender InCred to offer credit facilities to Zomato’s restaurant partners.

Photo credit: sharafmaksumov / 123RF

The food delivery industry was one of the worst affected segments during the pandemic. However, InCred said it now sees a revival trend in the space and the food delivery business has crossed pre-Covid run rate and will grow further in the coming months. The partnership aims to extend financial assistance to cash-strapped businesses for meeting their business growth and working capital needs.

Founded in 2016, InCred provides unsecured business loans for Indian businesses. Its credit services include small and medium-sized enterprise loans (working capital loans, term loans, and channel finance), personal loans (wedding loans, medical loans, and travel loans), and education loans.

“While the food delivery business has made a strong comeback, [the] overall food service industry is still far from reaching pre-Covid levels. We have been working on many initiatives to boost its recovery and one such is our partnership with InCred,” said chief sales officer Zomato Rakesh Ranjan.

The development comes shortly after Zomato closed US$660 million in a round from Tiger Global, Fidelity, among others, which gave Zomato a post-money valuation of US$3.9 billion. Previously, Zomato CEO Deepinder Goyal disclosed in an email to employees that the firm is likely to go public in the first half of 2021.