Ant Group’s Antfin Singapore to Sell 2% Stake in Zomato via Block Deal: Report
- ByStartupStory | March 7, 2024
Antfin Singapore Holdings Pte, a subsidiary of China-based Ant Group, is reportedly set to offload up to a 2% stake, amounting to 17.64 crore shares, in the popular food delivery platform Zomato. The block deal, valued at ₹2,800 crore, has a fixed floor price of ₹159.4 per share, representing a 4% discount on Zomato’s current market price.
Zomato’s shares closed 1.8% lower at ₹166.8 on the BSE on Tuesday. However, the company had recently experienced a record high on Friday, reaching ₹173.5, attributed to improving profitability paving the way for future growth.
As Asia’s third-largest economy’s most valuable internet stock, Zomato boasts a market capitalization exceeding ₹1.51 trillion. In the third quarter ended December 31, 2023, the food delivery platform reported a consolidated net profit of ₹138 crore, a significant turnaround from the ₹347 crore consolidated net loss in the same quarter the previous fiscal year.
Zomato’s consolidated revenue from operations stood at ₹3,288 crore, compared to ₹1,948 crore in the year-ago period. Despite higher total expenses at ₹3,383 crore, up from ₹2,485 crore in the corresponding period a year ago, the company showcased accelerated growth in its quick commerce sector and a steady performance in its core business.
In a letter to shareholders, Zomato’s Managing Director & CEO, Deepinder Goyal, stated, “In the third quarter, the food delivery gross order value (GOV) growth reached up to 25% year-on-year (YoY). At this point, we expect GOV to continue growing at 20% plus YoY, and perhaps accelerate further if we see more than expected market share gains and revival in macro consumer demand.”
During the third quarter of FY24, Zomato’s food delivery business reported an adjusted revenue of ₹2,025 crore, compared to ₹1,565 crore in the year-ago period.
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