Tiger Global exits Zomato, offloads all shares for Rs 1,123 Cr

Tiget Global's exit comes few months after Chinese behemoth Alibaba sold part of its stake in food delivery firm Zomato earlier this year.

Tiger Global exits Zomato, offloads all shares for Rs 1,123 Cr

Monday August 28, 2023,

2 min Read

Tiger Global Management, one of Zomato's top investors, exited the food delivery firm on Monday by selling its remaining shares for Rs 1,123.85 crore.

The global investment firm's Internet Fund III PTE Ltd offloaded 12.34 crore shares at Rs 91.01 apiece, as per bulk deals data available on BSE. Last week, CNBC-TV18 reported that SoftBank was reportedly looking to sell its shares in Zomato through block deals as the 12-month lock-in period for investors post the Blinkit deal ended on Aug 25.

In August last year, Uber sold its 7.8% stake in Zomato worth Rs 3,087.93 crore, marking its exit from the Deepinder Goyal-led company. Investment firm Fidelity Investments and ICICI Prudential Life Insurance Company bought stakes in the company on the same day, according to data on BSE.

Earlier this month, Zomato recorded its first-ever quarterly profit of Rs 2 crore, helped by growth in Hyperpure and marginal improvement in the food delivery segment. It had previously expected to hit the milestone by Q2 FY24.

Hyperpure—Zomato's business-to-business supplies vertical—recorded a 126% rise in revenue to Rs 617 crore from Rs 273 crore earned last year. This was primarily due to an increase in the minimum order value which led to a rise in average order value, the company had said.

The achievement sent waves of optimism among industry onlookers, including investors and foodtech executives, in the hope that the company's big break had perhaps arrived.

Rival Swiggy posted its first-ever month of profit in March, according to CEO Sriharsha Majety, who said that the Prosus-backed food and grocery delivery firm has become one of the very few global food delivery platforms to achieve profitability in less than nine years of its inception.

Swiggy is also said to have restarted its initial public offering (IPO) plans after halting it earlier this year following weak market sentiment, Reuters said in a report.

Edited by Kanishk Singh