Alibaba to sell $200 million worth of Zomato stock

• ByStartupStory     |    November 30, 2022

One of Zomato’s largest shareholders, Alibaba Group, is reportedly selling $200 million worth of stock in the food delivery company on November 30. A block deal is anticipated to be used to sell the interest at a discount of 5% to 6%. The transaction’s broker will be the investment bank, Morgan Stanley.

Through its two subsidiaries, Ant Financial and Alipay, the Chinese e-commerce giant owns a 13% stake in Zomato. According to the CNBC Awaaz report, Alibaba’s ownership will drop to 10% after the share sale. The news comes only days after the third top management departure in a month for the world’s largest food delivery company.

Mohit Gupta, a co-founder, left his position last week after serving for four years. He was followed by Siddharth Jhawar, the former director of the Intercity Legends service, who left earlier this month, and Rahul Ganjoo, the head of the new ventures. Gaurav Gupta, a former co-founder of Zomato, also left the company two months after it went public.

In August of this year, Sequoia Capital, another significant shareholder in Zomato, sold a portion of its pre-IPO shares on the open market, bringing its ownership of the restaurant aggregator and meal delivery service down to 4.4%.

Additionally selling their shares earlier were Uber, Tiger Global Management, and the taxi aggregator Delivery Hero.

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