Tiger Global cuts stake in Zomato by almost half as it sells over 18 crore shares

Zomato on Thursday said investment firm Tiger Global has reduced its stake in the food delivery company by almost half to 2.77 percent. Tiger Global's Internet Fund IV had a holding of 5.11 percent in Zomato before the lock-in period ended on July 23.

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

On Wednesday, Uber Technologies offloaded 61.2 crore shares, its entire 7.78 percent stake in Zomato, for Rs 3,088 crore in a big block deal. The shares were disposed of at an average price of Rs 50.44 apiece.

The bulk of these shares sold by Uber were bought by Fidelity Investment Trust Fidelity Series Emerging Markets Opportunities Fund which picked 5.44 crore shares for Rs 50.26 a piece.

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

Uber made a notional Rs 9,000 crore when Zomato got listed in July 2021. But it didn't sell the shares during the IPO or right after it. The same shares were worth just over a third of that value when sold.

The food delivery aggregator reported consolidated revenue of Rs 1,141.3 crore for the first quarter, sharply up by 67 percent from Rs 844.4 crore reported during the same quarter last year. The revenue was up 16.68 percent on a quarter-on-quarter (QoQ) basis.

The company narrowed its consolidated loss to Rs 185.7 crore in the June quarter compared to Rs 356.2 crore in losses last year and Rs 359.7 crore during the last quarter.

Zomato shares closed 4 percent higher at Rs 57 per share on BSE today.