Uber plans to promote its 7.8% holding in Indian meals supply agency Zomato as early as Wednesday, a supply aware of the matter instructed TechCrunch.
The ride-hailing big, which acquired stake within the Indian agency when it offered its native Uber Eats enterprise to Zomato in early 2021, plans to promote its stake via a block deal of over $350 million, for which it’s working with Financial institution of America Securities, the supply mentioned, requesting anonymity as the main points are non-public.
The U.S. agency, which reported a internet lack of $2.6 billion for the second quarter, mentioned Tuesday that it assumed an unrealized lack of $707 million on its Zomato funding within the first half of this yr and the quarter that resulted in June 30, 2022.
Uber offered its meals supply enterprise in India to the native rival Zomato for $206 million, following years of aggressively makes an attempt to compete with native meals giants Zomato and Swiggy. As a part of the deal, Uber acquired a 9.99% stake within the loss-making Indian meals supply startup. Uber didn’t instantly reply to a request for remark.
Shares of Zomato have been performing poorly all through this yr and tumbled to an all-time low final week after the top of the lock-in interval of traders who had stakes within the firm previous to the preliminary public providing.
The inventory closed at 55.55 Indian rupees (72 cents) apiece Tuesday, giving the corporate a market cap of $5.5 billion, far beneath the $13.2 billion valuation it accrued on its debut day a yr in the past. Zomato mentioned on Tuesday that it goals to succeed in EBIDTA breakeven by the This autumn of subsequent yr and it had downgraded its funding in fast commerce Blinkit from $400 million to $320 million.