In a significant move reflecting China-based Ant Group’s continuing retreat from Indian tech investments, Antfin Singapore Holding Pte Ltd is set to divest its entire stake in Eternal Ltd, the parent company of Zomato and Blinkit, for approximately ₹5,375 crore via a large block deal. The exit mirrors Antfin’s broader strategy of unwinding positions in India’s consumer tech giants amid tightening regulatory oversight and geopolitical sensitivities.
Deal Details: ₹285 Per Share, 5% Discount
According to a CNBC-Awaaz report on August 6, Antfin will offload 18.84 crore shares, equivalent to its 1.95% stake in Eternal Ltd, at a floor price of ₹285 per share—a near 5% discount to Zomato’s current market price.
Morgan Stanley is reportedly the broker facilitating the transaction. If fully executed, the deal will be worth ₹5,375 crore, marking yet another high-profile stake sale in India’s tech sector by a Chinese investor.
Why Now? A Strategic Pullback
Antfin’s exit comes at a time when Eternal Ltd is experiencing a transformation in its revenue model, with quick commerce platform Blinkit overtaking Zomato’s traditional food delivery in terms of order value for the first time. Yet, despite the booming top line, the company is battling tight profit margins, which may have influenced investor sentiment.
Notably, this move aligns with Ant Group’s broader disinvestment spree across Indian tech majors. Just a day earlier, on August 5, Antfin (Netherlands) Holding BV sold its entire 5.84% stake in One97 Communications, the parent of Paytm, for ₹3,980 crore in open market transactions.
Together, these back-to-back exits from Eternal and Paytm signify a decisive strategic shift.
Eternal’s Q1 Performance: Growth with Profit Pressures
In its June 2025 quarter results, Eternal Ltd reported a massive 70% year-on-year rise in revenue, clocking ₹7,167 crore, up from ₹4,206 crore in the same quarter last year. This surge was largely driven by Blinkit, which saw its net order value skyrocket by 127% to ₹9,203 crore, surpassing Zomato’s core food delivery business.
However, the growth came at a cost. The company’s consolidated net profit dipped by 90% to ₹25 crore, reflecting the heavy investments and rising costs associated with Blinkit’s expansion and logistics operations.
For Eternal, the road ahead involves balancing its aggressive scaling of Blinkit with the need to restore profitability.
The Ant Group Exit Playbook
Ant Group, formerly known as Ant Financial and backed by Alibaba’s billionaire founder Jack Ma, has been reducing its presence in India post-2021, after facing regulatory pressure both at home and in foreign markets.
After Paytm’s IPO in 2021, Ant Group gradually trimmed its stake. As of March 2025, it still held nearly 10% of Paytm, but its May 2025 sale of a 4% stake for ₹2,103 crore, followed by this August 5 full exit, shows a clear pattern of strategic withdrawal.
The same playbook now appears to be unfolding with Eternal Ltd.
What This Means for the Indian Market
While Antfin’s exit may remove a prominent foreign investor from Eternal’s cap table, it could pave the way for domestic institutional investors or global funds to pick up a stake in one of India’s most prominent consumer tech firms. The discounted block deal may also create short-term price pressure, but long-term bullishness around Blinkit and Zomato’s dominance remains strong.
Moreover, Ant Group’s departure adds to a growing list of Chinese firms divesting from Indian startups, a trend accelerated by India’s tightening FDI rules and geopolitical considerations post-2020.
Credits: Money Control
Final Thoughts
Antfin’s ₹5,375 crore exit from Eternal Ltd is more than just a portfolio reshuffle—it marks the end of an era where Chinese giants once had deep influence in shaping India’s consumer tech revolution. As Eternal charts a new chapter led by domestic growth, AI, and quick commerce, the market will be watching closely: can the unicorn-turned-listed-giant sustain its breakneck growth and return to robust profitability?
Only time will tell. But one thing is clear: the tech investment landscape in India is changing—fast.
