Uber sold its food delivery business in India to Zomato for $206M
Uber sold its food delivery business in India to the local rival Zomato for $206 million, the American ride-hailing company disclosed in a regulatory filing in one of its key overseas markets.
In January, Uber announced that it had sold the India business of Uber Eats to Zomato for a 9.99% stake in the loss-making Indian food delivery startup. The two companies had not disclosed the financial terms of the deal, which some Indian outlets slated to be of $350 million in size. TechCrunch had reported that Uber Eats’ India business was valued at about $180 million.
In the filing, Uber said the “fair value of the consideration” it received for Uber Eats’ India business from Zomato was $206 million, which included $35 million of “reimbursement of goods and services tax receivable from Zomato.”
The deal underscores a significant cut in 11-year Indian firm’s valuation, which was reported to be worth $3 billion when it disclosed a $150 million fresh investment earlier this year.
In an interview with India’s PTI in December, Zomato co-founder and chief executive Deepinder Goyal said the company was in the process to raise as much as $500 million by end of January. The company has yet to secure rest of the capital.
The exit of Uber Eats from India, however, made the local food delivery market a duopoly between Zomato and Prosus Ventures-backed Swiggy, which raised $113 million in an ongoing round last week.