Zomato has recently sold its UAE business to Delivery Hero for a total of 172 Million USD. As per the deal that has been made, the business will still continue to run on its platform. Moreover, it does not include other Zomato businesses such as Zomato Gold and Zomato Ads. With this deal, InfoEdge India, which happens to be the second largest shareholder in this brand, now owns 26.38 % of the shares. Furthermore, Zomato has also recently closed a new round of funding with the inking of this deal. Delivery Hero has invested 50 million USD into Zomato’s global operations.
According to spokespeople from Delivery Hero, this deal will be executed through their subsidiary, Talabat Middle East Internet Services Company LLC. Speaking about the same, Niklas Ostberg, the chief executive of the brand, said: “Zomato has built a successful food delivery business in the UAE and India on the back of its restaurant search and discovery app and website,”. He elaborated on the same by saying “The acquisition will allow us to further improve our service to customers in the UAE”.
Deepinder Goyal, the CEO of Zomato said, “I am delighted to welcome Delivery Hero as a partner and shareholder and look forward to learning from their global experience to help us strengthen our fast-growing India food delivery business,”
According to InfoEdge, Zomato is currently in the process of receiving a tranche worth 105 Million USD, wherein a significant portion of the capital will come from Glade Brooke Capital. So, in totality, this food mammoth has raised 315 Million USD in funding. This includes an influx worth 210 Million USD from Alibaba Group. Furthermore, Zomato Media has also received funding worth 39.7 Million USD from Glade Brooke Capital.
Delivery Hero’s other investments to take note of
It is important to note that Delivery Hero has also recently invested 1 Billion USD in Swiggy, which is Zomato’s biggest rival. With that in mind, their investment in Zomato is not that large. Delivery Hero also established some presence in India through FoodPanda, which was sold to Ola in 2017.
So, it is interesting to see how valuable the Indian market has become to foreign investors. This can mean that the Indian market can expect not only more FDIs, but also interesting funding from investors across the world who want to capitalize on its size.