Business

Uber likely to invest up to $200 million in Zomato as part of tie up, says report

Updated : December 16, 2019 01:04 PM IST

Uber-Zomato deal becomes a reality, the new joint venture will be the biggest of its kind in the Indian food delivery market, ahead of rivals such as Swiggy.

Zomato is looking to raise up to $ 600 million next month in a new funding round, founder and CEO Deepinder Goyal said.

The development came at time when Uber was in discussions with Zomato for sell of its food delivery business in the country.

Ride-hailing app Uber is likely to invest up to $ 200 million as part of its deal with Zomato, The Economic Times reported. The development came at time when Uber was in discussions with Zomato for sell of its food delivery business in the country.

If the deal becomes a reality, the report added, the new joint venture will be the biggest of its kind in the Indian food delivery market, ahead of rivals such as Swiggy.

“While the agreement is not yet signed, they are in a period of exclusivity, which means both parties cannot engage with others. Uber’s capital commitment can range between $100 million and $200 million, but this may be along with a few other investment funds,” the report said quoting a source as saying. Another source told media that Zomato was likely to be part of the deal only if Uber invested in the joint entity.

The latest development, the report said, came after Gurugram-based Zomato was making serious attempts to raise funds. The online restaurant guide and food ordering platform was looking to raise up to $ 600 million next month in a new funding round, said Zomato founder and chief executive officer Deepinder Goyal.

(With Agency Inputs)

Uber likely to invest up to $200 million in Zomato as part of tie up, says report

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