New Biz

Tiger Global sells 2.34% stake in Zomato

Foodtech unicorn Zomato on Thursday said investment firm Tiger Global has reduced its stake in the Gurugram-headquartered company by almost half to 2.77% by selling over 18.45 crore shares in the open market.

Tiger Global’s Internet Fund VI Pte Ltd had a holding of 5.11% in the online food delivery platform before the sale.

Between July 25-August 2, 2022, the fund sold over 18.45 crore shares aggregating to a 2.34% stake in the company in the open market, Zomato said in a regulatory filing.

Post the sale, Internet Fund VI Pte Ltd has a 2.77% stake in Zomato, it added.

On Wednesday, ride-hailing app Uber had offloaded 61.2 crore shares of Zomato for Rs 3,088 crore through an open market transaction.

The shares were disposed of at an average price of Rs 50.44 apiece, taking the transaction value to Rs 3,087.93 crore.

Uber picked up the stake in Zomato after the latter acquired its local food business UberEats in an all-stock deal in 2020.

On Monday, Zomato reported losses of Rs 186 crore for Q1, 2023, a 48% decline from the year-ago period. Operating revenue for the quarter grew to Rs 1,414 crore from Rs 844 crore in the year-ago period.

During the earnings call, the company said it was looking to achieve EBITDA breakeven at a company level by Q4 of FY 2023 or latest by Q2 of FY 2024.