US-based investment giant Tiger Global, through its venture capital fund Internet Fund III Pte Ltd, on Monday (August 28) completed its exit from the online food delivery platform Zomato by divesting its entire shareholding for a total consideration of Rs 1,123.85 crore.

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Axis Mutual Fund, SBI Life Insurance Company, ICICI Prudential Life Insurance Company, Founders Collective Fund, Morgan Stanley Asia Singapore and Societe Generale, among others were the buyers of the shares of Zomato.

Tiger Global's exit from Zomato involved the sale of approximately 12.35 crore shares in the company, realising a transaction value of Rs 1,124 crore at an average price of Rs 91.01 per share. This move marked the conclusion of Tiger Global's investment journey with Zomato, a notable player in India's food delivery and restaurant discovery market.

Tiger Global's offloading of its 1.44 percent equity stake in Zomato highlights the investment firm's strategic decision to monetise its holdings in the online food delivery platform. It's worth noting that Tiger Global had been a significant investor in Zomato for a considerable period.

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In addition to Tiger Global, DST Global through its investment vehicle Apolleto Asia Ltd also participated in the share sale, divesting approximately 3.2 crore shares in Zomato for Rs 288 crore. These shares were sold at an average price of Rs 90.10 per share.

At the end of the June quarter, Tiger Global owned a 1.44 percent stake in Zomato, shareholding data showed with the BSE. In August 2022, Tiger Global reduced its stake in the company by almost half to 2.77 percent by selling over 18.45 crore shares in the open market. Tiger Global's Internet Fund VI Pte had a holding of 5.11 percent in the online food delivery platform before the sale.

Zomato turned profitable for the first time during the June quarter of this fiscal. The profitability was aided largely by operational improvement in the company's food business as its food delivery margins rose to 13.6 percent.

The firm’s consolidated net profit of Rs 2 crore for the first quarter of the fiscal came against a net loss of Rs 186 crore in the year-ago period. The consolidated revenue from operations surged 71 percent year-on-year to Rs 2,416 crore, compared to Rs 1,414 crore in the corresponding quarter of last fiscal.

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(Edited by : Shoma Bhattacharjee)

First Published:Aug 28, 2023 9:01 PM IST