Uber is most likely the seller of a 7.8% stake in Indian food delivery platform Zomato which is set to go on sale Wednesday, August 3.
According to a Reuters report on Tuesday, Aug. 2, a term sheet shows the offer size of 612 million shares is worth $373 million. Sources told Reuters that the seller in question is Uber, although the term sheet does not identify the seller.
Read more: Zomato buys grocery delivery startup Blinkit for $568 million
Last month, news broke that Zomato was buying local grocery delivery startup Blinkit for 44.47 billion rupees ($568.2 million) in an all-stock deal as part of its strategy to expand its capabilities in space in a context of increased competition. Studies show that India’s fast trade sector was worth $300 million in 2021 and is expected to reach $5 billion by 2025, according to the report, citing research firm RedSeer.
Zomato bought nearly 10% of Blinkit last summer for $66.2 million and said earlier this year it was aiming to invest up to $400 million in India’s fast-trading sector over the next few years. next two years. Their purchase of Blinkit exceeded that amount by at least $100 million.
Uber released results on Tuesday that show the company’s gross bookings were up 33% year-over-year. The company’s filing reveals that its delivery segment saw 12% growth in gross bookings – to $13.9 billion – leading to a 43% increase in revenue from that unit, to 2 $.7 billion, measured in constant currency.
See also: MENA food delivery service bucks global downward trend
PYMNTS recently reported that the food delivery industry is struggling in many parts of the world, with the Middle East and North Africa (MENA) appearing to be an exception, as local and international delivery players in this region seem to speed things up.
For example, Deliveroo launched its grocery delivery service, Deliveroo Hop, in the United Arab Emirates (UAE), where the service is available in five cities.
And Uber’s subsidiary in the Middle East, Careem, has strengthened its presence in MENA markets. In June, the company bought Dubai-based Munch:On, improving its ability to deliver food in the country in a bid to gain an edge over competitors.