Cab aggregator Uber will likely sell its 7.8 percent stake in the online food delivery platform Zomato. This stake is expected to be worth around Rs 2,938 crore ($373 million). This new report comes at the heels of Zomato’s positive quarterly results.

The offer from Uber is expected to come with a price range of Rs 48-54 per share, equivalent to 612 million or 7.8 percent of total outstanding shares, according to a report by CNBC TV18.

Uber had purchased a stake in Zomato by selling off its Uber Eats business in India. The companies made the transaction in the year 2020. Since then, the online food delivery service provider has gone public. Zomato shares closed 19.96 percent up, at Rs 55.60 on Tuesday. Its stock has lost over 60 percent of it value this year.

Zomato reported Rs 185.7 crore in consolidated loss for the quarter ending June 30, compared to a loss of Rs 359.7 crore in the previous quarter. The company managed to shrink losses despite criticism for the recent mega Blinkit deal. Zomato decided to acquire Blinkit for a price of Rs 4,447 crore. It was an all-stock deal that was finalized in the month of June this year. The financials of Blinkit will start
getting consolidated into Zomato’s consolidated financials post the approval from stock exchanges.

Analysts believed that Zomato acquisition of another loss-making business will affect its log books negatively. However, the brand managed to improve over last quarter’s performance. The company stock price has been witnessing a steady downfall since the IPO in July 2021.

Zomato chief Deepinder Goyal, in his letter to stockholders emphasized that the company will continue to focus on profitability but not at the expense of losing users. The company has claimed that they will continue to focus on retaining, hiring employees in order to boost growth in the long term.

The post Uber-Zomato deal: Cab aggregator likely to sell stake in Zomato for Rs 2,938 crore appeared first on BGR India.

 

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