Sequoia Capital sells 2% of its stake in Zomato

Top VC Company Sequoia Capital India sold 17.2 crore shares of Zomato in two tranches on the open market, reducing its stake in the online food aggregator to 4.4 percent, from earlier 6.41 percent.



In a new filing with the Bombay Stock Exchange (BSE), Zomato said Sequoia Capital India sold about 6.7 crore shares in the period from September 6 to October 14, 2021 and 10.5 crore shares between June 27 and August 25, 2022.

The stock sales were carried out by: Sequoia Capital India Growth Investment Holdings me and SCI Growth Investments IIaccording to Zomato.

Sequoia Capital India Investments IV also received 45,153,346 incremental shares on Aug. 10 as a result of the acquisition of fast delivery platform Blinkit, which has a further one-year lock-in period.

Sequoia Capital India joins a list of private market investors such as Delivery Hero, Moore Strategic Ventures and Tiger worldwidewho have sold their shares in Zomato in recent months, either in the open market or through block deals, as the stock of the online food delivery platform is hammered.

On Friday, Zomato shares closed at around Rs 61.85.

Earlier this month, ride-hailing platform Uber sold its 7.8 percent stake worth more than $390 million in Zomato.

Uber, which lost about $707 million in the first half of this year on its investment in Zomato, sold its stake in the food delivery aggregator through a block deal on exchanges bought by several global and Indian VCs.

The Zomato block deal was executed at Rs 50.44 per share, which is equivalent to 612 million or 7.8 percent of the total outstanding shares.

In a statement to IANS, Zomato had said that “we are a publicly traded company and are unaware of what our shareholders are doing with their shares”.

According to the company, losses for Blinkit are dropping every month – 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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