Tiger Global sells 2.34% stake in Zomato

Tiger Global announced on Thursday that it has sold a 2.34% stake in Zomato, or 184.4 million shares, between July 25 and August 2, following Moore Strategic Ventures and Uber Technologies.

Tiger Global owned 5.11% of the company before this transaction, per an exchange filing. The percentage of its shares has now dropped to 2.77%.

Tiger Global purchased Zomato shares in two instalments, the first in September 2020 at a $3.4 billion valuation. Zomato raised $250 million later in February 2021 from a number of investors, including Tiger Global, for an estimated valuation of $5.4 billion.

On Wednesday, Uber Technologies sold 612 million shares in various block trades to completely liquidate its 7.8% ownership in the meal delivery service. The American mobility service company raised over $390 million, or Rs3,088 crore, for a nearly 100% profit. Zomato purchased the India operations of Uber Eats in a non-cash transaction in January 2020, and as a result, Uber gained a 9.19% share in the restaurant discovery platform valued at $200 million.

The other significant pre-IPO investor, Moore Strategic Ventures, sold 42.5 million Zomato shares on July 26 for Rs44 each, which was less than the original purchase price.

On July 23 of last year, Zomato was successfully listed on the Indian stock exchanges, and on November 16, its shares more than doubled to an all-time high of Rs169.10. After the lock-in period for pre-initial public offering (IPO) shares expired on July 25, Zomato shares fell to an all-time low of Rs40.55.