Tiger Global Management offloads Rs 1,123.85 cr shares in Zomato, exits startup

• ByStartupStory     |    August 29, 2023

Tiger Global Management, a significant investor in Zomato, completed its exit from the food delivery company on Monday, selling its remaining shares for a total of Rs 1,123.85 crore. The global investment firm’s Internet Fund III PTE Ltd sold 12.34 crore shares at a rate of Rs 91.01 per share, as indicated by data on bulk deals available on the Bombay Stock Exchange (BSE). Reports from last week suggested that SoftBank was also considering selling its Zomato shares through block deals, as the 12-month lock-in period for investors after the Blinkit deal concluded on August 25. Last August, Uber sold its 7.8% stake in Zomato, valued at Rs 3,087.93 crore, signifying its exit from the leadership of Deepinder Goyal.

During the same day, investment firm Fidelity Investments and ICICI Prudential Life Insurance Company purchased stakes in Zomato, according to data available on the BSE. In a noteworthy achievement earlier this month, Zomato reported its first-ever quarterly profit of Rs 2 crore. This progress was supported by growth in Hyperpure and a slight improvement in the food delivery segment. The company had initially projected to reach this milestone by Q2 FY24. Hyperpure, Zomato’s business-to-business supplies division, saw its revenue surge by 126% to Rs 617 crore from last year’s Rs 273 crore. This was primarily attributed to an increase in the minimum order value, resulting in higher average order values.

This accomplishment triggered optimism among industry observers, including investors and food tech executives, suggesting that Zomato may have reached a significant turning point. Swiggy, Zomato’s rival, reported its first profitable month in March, with CEO Sriharsha Majety highlighting that the Prosus-backed food and grocery delivery company had achieved profitability in less than nine years since its inception. Additionally, reports indicate that Swiggy has restarted its initial public offering (IPO) plans, which were put on hold earlier in the year due to weak market sentiment, according to Reuters.

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