Uber plans to sell its 7.8% stake in Indian food delivery company Zomato as early as Wednesday, a source familiar with the matter told TechCrunch.
The taxi giant, which acquired a stake in the Indian firm when it sold its local Uber Eats business to Zomato in early 2021, plans to sell its stake through a more than $350 million block deal it is working on with Bank of America. Securities, the source said on condition of anonymity because the details are confidential.
The US firm, which posted a net loss of $2.6 billion for the second quarter, said On Tuesday, the company posted an unrealized loss of $707 million on its investment in Zomato for the first half of this year and the quarter ended June 30, 2022.
Uber sold its food delivery business in India to local competitor Zomato for $206 million after years of aggressive attempts to compete with local food giants Zomato and Swiggy. As part of the deal, Uber acquired a 9.99% stake in a money-losing Indian food delivery startup. Uber did not immediately respond to a request for comment.
Zomato shares have been underperforming this year. fell to a record low last week after the end of the blocking period for investors who held stakes in the company prior to the initial public offering.
The shares closed at INR 55.55 (72 cents) a share on Tuesday, giving the company a market capitalization of $5.5 billion. below the $13.2 billion estimate. it happened on his debut day a year ago.
Credit: techcrunch.com /