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Uber plans to sell 7.8% stake in Indian food delivery company Zomato – TechCrunch


Uber plans to sell its 7.8% stake in Indian food delivery company Zomato as early as Wednesday, a source familiar with the matter told TechCrunch.

The ride-sharing giant, which acquired a stake in the Indian company when it sold its local Uber Eats business to Zomato in early 2021, plans to sell its stake in a block of more than $350 million. , for which he works with Bank of America Securities, the source said, requesting anonymity because the details are private.

The US company, which reported a net loss of $2.6 billion for the second quarter, said on Tuesday it assumed an unrealized loss of $707 million on its Zomato investment in the first half of this year and the quarter that ended June 30, 2022.

Uber has sold its food delivery business in India to local rival Zomato for $206 million, after years of aggressive attempts to compete with local food giants Zomato and Swiggy. As part of the deal, Uber acquired a 9.99% stake in the loss-making Indian food delivery startup. Uber did not immediately respond to a request for comment.

Shares of Zomato have performed poorly throughout this year and fell to an all-time low last week after the end of the lock-in period for investors who held stakes in the company before the IPO.

The stock closed at 55.55 Indian rupees (72 cents) apiece on Tuesday, giving the company a market capitalization of $5.5 billion, well below the $13.2 billion valuation it had accumulated on the day of its debut a year ago.

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