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 londonbusinessblog.com.
The ride-hailing giant, which acquired a stake in the Indian company 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, for which it is partnering. with Bank of America Securities, the source said, asked for anonymity because the details are private.
The US company, which reported a net loss of $2.6 billion in the second quarter, said Tuesday reported an unrealized loss of $707 million on its investment in Zomato during the first half of this year and the quarter ended June 30, 2022.
Uber sold its food delivery business in India to local rival Zomato for $206 million, after years of aggressive efforts to compete with local food giants Zomato and Swiggy. As part of the deal, Uber acquired a 9.99% stake in the loss-making Indian food delivery startup. Uber did not immediately respond to a request for comment.
Shares of Zomato underperformed this year, falling to an all-time low last week following the end of the lock-in period for investors holding stakes in the company prior to the IPO.
The stock closed Tuesday at 55.55 Indian rupees (72 cents) apiece, giving the company a market cap of $5.5 billion, well below the $13.2 billion valuation it had made on its debut day a year ago. .