Gurgaon-heaedquartered Zomato , the online food delivery and restaurant discovery platform, has sold its United Arab Emirates (UAE) delivery business to the Berlin, Germany-based Delivery Hero for $172 million, announced Info Edge (India) Ltd, which is second largest sharre holder in Zomato.
Zomato raised an additional $105 million in its ongoing corporate funding round with new investors including Delivery Hero and Glade Brook Capital, Info Edge announced.
Zomato has raised a total of $755.6 million in funding over 13 rounds including this, according to data by Crunchbase.
Post this deal, Info Edge, which owns 99acres.com & Naukri.com, will own a 26.38 percent stake in Zomato.
Zomato and Delivery Hero will then enter services agreements under which Zomato will continue to run the business on its own platform.
“The acquisition will add 1.2 million monthly orders and $2 million monthly revenue to Delivery Hero’s Far East and North Africa business and will strengthen its leadership position in the UAE. The acquisition will be fully funded by an acquisition facility,” the company said in a statement.
Operated by Talabat Middle East , a fully-owned subsidiary of Zomato, ‘Zomato UAE’ will continue to own and run its allied businesses, which include Zomato Gold and ad sales, among others.
Naspers, which owns the largest stake in Delivery Hero, has recently led the massive $1 billion funding of Zomato’s rival Swiggy.
In September 2017, Nasper had increased its stake in Delivery Hero from 10.6% to 23.6% by acquiring 22,359,857 shares that were previously held by Rocket Internet for an amount of massive $775 million.
Last month, it was also reported that Uber Eats, the food delivery business of cab hailing firm Uber, can make a tactical exit from India by selling its India business worth $330 million to its local rival Swiggy.
Source – Economic Times, Business Standard
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