Restaurant search and discovery service Zomato is planning to stop charging commission from restaurants that bring in high orders in a bid to strengthen its hold in the food-tech space and take on Nasper-backed Swiggy.

About the Programme  

The programme is probably going to cover 70% of Zomato’s 25,000-eatery accomplice organize in the nation. Zomato at present charges 7% as commission expenses from eateries under its nourishment requesting business, which does exclude conveyance and installment entryway charges.

Swiggy’s commission fees are pegged at 1530%, but include delivery and payment charges.

The reason to end commission charges

The reason to end commission charges comes after Zomato turned profitable across all 24 countries where it has its presence.

“Our core advertising business in India, Southeast Asia, and the Middle East — the three key regions for us — is generating enough cash to cover for the millions of dollars of investments we are making in the rest of the regions, and our new businesses like online food ordering, table reservations, Zomato Gold, Zomato Base, etc.” wrote Deepinder Goyal, CEO, Zomato.

Zomato plans to raise $200 million

Zomato is in advance talks with Alibaba and its payment affiliate Ant Financial to raise up to $200 million which could see Zomato being valued at $1.1 billion.