Sequoia Capital India reduces its stake in Zomato to 4.4% by selling 17.2 crore shares

• ByStartupStory     |    August 27, 2022

Sequoia Capital India, a renowned venture capital firm, reduced its investment in the online food aggregator from 6.41 percent to 4.4% by selling 17.2 crore shares of Zomato in two tranches on the open market.

According to a new filing with the Bombay Stock Exchange, between September 6 and October 14, 2021 the venture capital sold approximately 6.7 crore shares and between June 27 and August 25, 2022 it sold 10.5 crore shares

According to Zomato, the stock sales were carried out by Sequoia Capital India Growth Investment Holdings I and SCI Growth Investments II.

On August 10, Sequoia Capital India Investments IV additionally obtained 45,153,346 more equity shares as a result of the purchase of the one-year lock-in quick-commerce delivery platform Blinkit.

Sequoia Capital India joins a list of private market investors who have recently sold their shares in Zomato, either on the open market or through block deals, as the stock of the online food delivery platform has been crushed. These investors include Delivery Hero, Moore Strategic Ventures, and Tiger Global.

Zomato’s stock closed on Friday at about Rs 61.85 and Execution of the Zomato block deal cost Rs 50.44.The cost for the Zomato block purchase was Rs 50.44 per share, which is equivalent to 612 million shares or 7.8% of the total number of shares outstanding.

Uber’s ride-hailing service sold its 7.8% share in Zomato earlier this month for nearly $390 million.Uber, which in the first half of this year lost almost $707 million on its investment in Zomato, sold its stake in the food delivery aggregator in a block deal on stock exchanges, and many international and Indian VC firms purchased it.

The business claims that Blinkit’s monthly losses are decreasing, having dropped from Rs 2,040 million (about $26 million) in January 2022 to Rs 929 million ($12 million) in July.

The 10-minute delivery platform was acquired by Zomato for Rs 4,447 crore (about $568 million).

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