Uber is planning to sell its 7.8 per cent stake it had acquired in Indian online food delivery firm Zomato in early 2021. The shares have been fixed at RS 48-Rs 54 per piece with a discount of 2.8 to 13.6 per cent on Tuesday’s closing price of Rs 55.55 on the NSE.
India’s economic times says the sale could fetch about Rs 2,939 0r about $373 million on the lower side.
Reportedly according to TechCrunch, uber recorded an unrealized loss of $707 million on its Zomato investment in the first half of the year in the quarter ending June 30th and $245 million during the second quarter of the year. Zomato has been performing poorly in both Q1 and Q2 of 2022.
Uber’s total losses in the firm for Q2 2022 stood at $2.6billion of which, $1.7 billion is related to its equity investments and aggregates unrealised losses related to the revaluation of its stakes in the US-based tech Aurora, Zomato and Indonesian ride-hailing startup Grab.
Uber received its stake in Zomato after selling off its food delivery arm in India to the food startup in 2020 for $206 million after years of stiff competition with homegrown startups Zomato and Swiggy.
Shares of Zomato dropped to an all-time low last week to 41.25 Indian Rupees equivalent to around $52 cents that saw the company’s market cap drop to $4.11billion. On Monday last week, Zomato shares dropped to 14.3 per cent after the end of the lock-in period for investors who had shares in the company prior to the initial public offering in the latest setback for retail investors backing the food delivery firm according to TechCrunch.