Zomato Media Private Ltd has announced to acquire Uber’s Food Delivery Business in India, UberEats, in an all-stock transaction.
As per a stock exchange filing by Zomato, the deal gives Uber a 9.99% stake in the company. Post-acquisition, UberEats will discontinue operations in India that include direct restaurants, delivery partners and users of its apps.
Adding to it, InfoEdge, an existing investor in Zomato, will reduce its stake to 22.71% when the deal closes. Info Edge, which operates a slew of internet businesses such as jobs portal Naukri.com, currently holds a 25.13% stake in Zomato.
InfoEdge didn’t disclose the financial details of the deal. However, as per The Economic Times report the two sources close to the deal stated that the deal valued at around $350 million.
Zomato has recently announced securing $150 million in fresh funding from Ant Financial, a subsidiary of Alibaba. This round of funding valued the company at $3 billion.
Dara Khosrowshahi, CEO of Uber, said that the Uber Eats team in India has achieved an incredible amount over the last two years. “India remains an exceptionally important market to Uber and we will continue to invest in growing our local Rides business, which is already the clear category leader,” he said. “We have been very impressed by Zomato’s ability to grow rapidly in a capital-efficient manner and we wish them continued success,” added.
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