According to different sources study of the deal’s term sheet indicates that Chinese payments company Alipay intends to sell its 3.4% ownership in the world’s largest food delivery company, Zomato, for about $400 million through block trades on Indian stock markets. According to the term sheet seen by Reuters, Ant Group, the owner of Alipay, will sell all 3.44% of its interest in the transaction.
According to Reuters, the three individuals, who asked not to be identified because the proposal is confidential, stated that Bank of America and Morgan Stanley are advisors on the deal, which is probably going to be implemented later this week on Indian markets. Requests for comments from Zomato, Bank of America, and Morgan Stanley were not immediately answered. Additionally, Alipay did not reply after regular work hours.
According to the term sheet, the block sales would be done at 111.28 rupees per share, which is 2.2% less than Zomato’s closing price on Tuesday. October saw the sale of a 1.1% share by Japan’s SoftBank in Zomato, the largest food delivery business in India. Recent years have seen a sharp increase in the demand for online ordering, driving firms like Zomato to pursue aggressive expansion. Alipay’s departure from Zomato coincides with a trend of other Chinese investors reducing their ownership of Indian businesses. China’s Antfin sold a 10.3% share in the Indian financial behemoth Paytm in August.
Other Investors who sold their stakes in Zomato Previously
SoftBank’s Svf Growth (Singapore) Pte. Ltd sold a 1.17% share in Zomato Ltd. on August 30, 2023, for ₹940 crore ($114 million). Tiger Global-backed Internet Fund III Pte Ltd sold 123.5 million shares, or 1.44%, of Zomato on August 28th in a bulk trade on the BSE, with each share selling for an average of Rs. 91.01.
The New York-based hedge fund sold more than 184 million shares, or 2.34%, of Zomato on the open market between July 25 and August 2, of last year. On August 29, DST Global also monetized about 32 million Zomato shares at a price of Rs. 90.10 per share through its investment vehicle, Apoletto Asia.
About Zomato
With Zomato, one of the most feature-rich and easy-to-use applications, users can quickly buy food online, have it delivered right to their door, and browse for local eateries and cafés. Furthermore, because it offers menus, reviews, and ratings, you may also obtain precise information on restaurants. Users may place orders and enjoy delicious cuisine at home based on that.
Two IIT graduates from Delhi, Deepinder Goyal and Pankaj Chaddah, launched Zomato in 2008. Zomato was once known as “Foodiebay” until November 2010. They once observed their coworkers looking through menus from several eateries in order to place an order. It was at that moment that the concept dawned on them to digitize these manual menus.
2012 saw Zomato begin to publish the number of eateries in the Indian market as it expanded throughout the country. Zomato continued to surpass milestones one after another on schedule. As of August 2023, Zomato’s income from its meal delivery service increased by 13.9%. It is called gross order value (GOV), which is the total value of all orders. Online meal ordering is becoming more and more popular, partly because of the user-friendly Zomato app. They may now easily order meals on Zomato from their mobile device and have them delivered to their location.
