Uber Technologies sold 7.8% stake in Zomato for $392 million

Uber Technologies has sold 7.8% of its equity in Indian food delivery firm Zomato Ltd for $392 million via a block trade, a privately negotiated securities transaction, on the local exchanges.

Reports say that the deal between Uber and Zomato was executed at 50.44 rupees per share after Zomato shares fell by 9.6% to 50.25 rupees on India’s Bombay Stock Exchange (BSE). The stock cut was trading down by 5.7% on 0634 GMT. On 4 July Zomato’s stock had closed at 55.6 rupees on BSE. The offer size of the block deal was set to be 612 million shares and the stake sale by Uber was approximately 30.87 billion INR. Uber also reported a net loss of $2.6 billion globally for the second quarter of 2022 including the equity investment in Zomato.

According to various reports, Indian startup companies are struggling to gain capital amid global inflation and low market value to which Uber deal comes as a sign of relief.