SUMMARY
Before the sale, Tiger Global held a 5.11% stake in the foodtech major; it has reduced its stake to 2.34%, selling off 54% of its total stake
Tiger Global sold 184,451,928 equity shares from July 25 to August 2, 2022, at a share price of INR 50.44 apiece
According to Inc42’s calculations, Tiger Global’s sale fetched the VC firm INR 930.37 Cr, or around $117 Mn
Since the one-year lock-in period ended on July 23, 2022, foodtech major Zomato has seen multiple big investors part ways. Tiger Global has joined the list of investors exiting the food delivery major, as the US-based VC firm reduced its stake in Zomato by more than half.
According to a disclosure made earlier today by Zomato with the Bombay Stock Exchange (BSE), Tiger Global has sold 184,451,928 equity shares from July 25 to August 2, 2022, at a share price of INR 50.44 apiece.
Tiger Global’s sale fetched the VC firm INR 930.37 Cr, or around $117 Mn, according to Inc42’s calculations.
Before the sale, Tiger Global held a 5.11% stake in the foodtech major, having invested via its Internet Fund VI. The US-based VC firm has reduced its stake to 2.34%, selling off 54% of its total stake in Zomato.
The US-based VC firm joined Zomato’s cap table in September 2020, investing $102.5 Mn. In February 2021, the US-based VC firm invested another $50 Mn in the foodtech major, bringing its total investment to $152.5 Mn. Per Inc42 calculations, Tiger Global has made a profit of around 41.5% on the purchase value of the stake.
Tiger Global has become the third major investor in Zomato that has either lowered its stake or exited entirely since the one-year lock-in period ended for internal investors after the foodtech major’s listing in July 2021.
Moore Strategic Ventures was the first investor to exit Zomato. The US-based VC firm sold 42.5 Mn equity shares it had acquired after the IPO. Moore exited Zomato at a loss, however.
Moore’s exit had coincided with Zomato’s share price hitting an all-time low of INR 40.55 apiece on July 27.
Just yesterday (August 3), ride-sharing major Uber exited the listed foodtech startup, selling 612 Mn shares in the company at INR 50.44 apiece. Uber managed to double its investment in Zomato, earning $394 Mn when it had invested $200 Mn in the foodtech startup in 2020 for a 9.99% stake.
Shares of Zomato were trading at INR 56.80 apiece at the end of the day’s trading on Thursday (August 4), up 2.43% from yesterday’s close.
On Monday (August 1), Zomato reported its Q1 FY23 results, which saw the foodtech major cut its losses by half to INR 186 Cr year-on-year. The foodtech major also reported that its food delivery business had reached break even at the adjusted EBITDA level.
