Alibaba to sell Zomato shares worth $200 million

Zomato’s share price has fallen over 55 per cent this year, amid senior level exits and job cuts….reports Asian Lite News

Chinese behemoth Alibaba is set to sell its shares worth $200 million in Zomato via a block deal on Wednesday, the media reported.

According to CNBC Awaaz, citing sources, Ant Financial and Alipay would bring down their stake in the Deepinder Goyal-run food delivery unicorn to about 10 per cent from the current 13 per cent.

“The block deal is said to happen at a discount of about 5-6 per cent,” said the report.

Zomato refused to comment when contacted by IANS.

Zomato’s share price has fallen over 55 per cent this year, amid senior level exits and job cuts.

In August this year, top VC firm Sequoia Capital India had sold 17.2 crore shares of Zomato in two tranches in the open market, lowering down its stake in the online food aggregator to 4.4 per cent from the earlier 6.41 per cent.

Sequoia Capital India joined a list of private market investors like Delivery Hero, Moore Strategic Ventures, and Tiger Global, which have sold their shares in Zomato in the past months, either in open market or via block deals, as the online food delivery platform’s stock gets hammered.

In the same month, ride-hailing platform Uber sold its 7.8 per cent stake worth over $390 million in Zomato.

In a statement to IANS, Zomato had said, “We are a public company and are not privy to what our shareholders are doing with their shares.”

Zomato stock on Tuesday closed 1.63 per cent down at Rs 63.35.

Zomato’s consolidated net loss decreased to Rs 251 crore for the September quarter, against Rs 430 crore in net loss in the same quarter last year.

The revenue went up to Rs 1,661 crore against Rs 1,024 crore in the year-ago period, a significant 62.2 per cent jump, the company said in a statement.

“This is the first quarter where we have crossed the billion dollar annualised revenue mark (at $1.05 billion),” said Zomato.

Acquisition of Blinkit (quick commerce) closed on August 10.

“Hence, this quarter includes 50 days of Blinkit financials consolidated into our overall financials,” said the company.

Blinkit’s Gross Order Value (GOV) grew 26 per cent quarter-on-quarter to Rs 14.82 billion while the revenue grew 44 per cent quarter-on-quarter.

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