Tiger Global concludes its exit from the online food delivery service Zomato by selling all of its shares

Tiger Global, a US-based investment firm, completed its departure from the online food delivery platform Zomato on Monday (August 28) by selling off all its shares for a total of Rs 1,123.85 crore ($136 million) through its venture capital fund Internet Fund III Pte Ltd, as reported by CNBC TV18.

Tiger Global concluded its involvement with Zomato, a major player in India’s food delivery and restaurant discovery sectors, by selling approximately 12.35 crore shares, resulting in a transaction value of Rs 1,124 crore ($136 million) at an average share price of Rs 91.01 ($1).

This sale of Tiger Global’s 1.44 percent equity stake in Zomato showcases the investment firm’s strategic decision to realize gains from its position in the online meal delivery service. It’s worth noting that Tiger Global had been a significant investor in Zomato for an extended period.

In addition to Tiger Global, DST Global also participated in the share sale through its investment entity Apolleto Asia Ltd, divesting over 3.2 crore Zomato shares for Rs 288 crore ($34 million).

Based on shareholding data provided by the Bombay Stock Exchange (BSE), Tiger Global held a 1.44 percent stake in Zomato at the close of the June quarter. In August 2022, Tiger Global sold more than 18.45 crore shares on the open market, reducing its ownership in the company by nearly half to 2.77 percent. Prior to this deal, Tiger Global’s Internet Fund VI Pte possessed 5.11 percent of the online food delivery service.

Zomato experienced profitability for the first time in the June quarter of the current fiscal year. The company’s food delivery margins increased to 13.6 percent, and operational enhancements in the food segment contributed to its profitability.

In contrast to a net loss of Rs 186 crore ($22 million) during the same period the previous year, Zomato achieved a combined net profit of Rs 2 crore ($242,000) in the first quarter of this fiscal year. Comparing the same quarter from the prior fiscal year to the present one, the consolidated revenue from operations surged by 71 percent year over year, reaching Rs 2,416 crore ($292 million) from Rs 1,414 crore ($171 million).