Tiger Global exits Zomato by selling remaining 1.4% stake

New York- based investment firm Tiger Global has sold its remaining 1.44% stake in online food delivery platform Zomato in the open market on Monday. According to BSE bulk deal data, Tiger Global's Internet Fund III Pte has sold 12.35 crore shares at Rs 91.01 apiece to raise about Rs 1,124 crore.

Shares of Zomato, which rallied 73% in the last six months, ended 1.5% higher at Rs 92.33 on the BSE today.

Among the buyers of Zomato’s shares are Morgan Stanley, Goldman Sachs, Societe Generale, BNP Paribas, Kotak Mahindra Mutual Fund and Axis Mutual Fund, data sourced from the BSE showed.


On Friday, about 51 lakh shares of Zomato had changed hands in a block deal, pulling the stock down over 2%.

In August last year, the Gurugram-based company had issued fresh equity shares to all the selling shareholders of quick commerce platform Blinkit as consideration for its acquisition by Zomato. Following the transaction, Zomato had negotiated a 12-month lock-in for these shares, as against the statutory lock-in requirement of six months.

A majority of these shares are owned by three venture capital investors – SoftBank Vision Fund, Tiger Global and Sequoia Capital India (now Peak XV Partners).

Zomato had issued 62.9 crore shares at the time of Blinkit’s acquisition, amounting to a stake of 6.88% on a fully-diluted basis.

Earlier this month, Zomato announced its first quarterly net profit of Rs 2 crore for the April-June quarter, much ahead of its guidance.

For the April-June period, according to brokerage firm Jefferies, the company’s food delivery business had an average order value of Rs 421, up 7% from the year-ago period. The brokerage firm also estimated Zomato’s total take rate to be approximately 23.8% – of which 18.7% was from restaurants and the remaining 5.1% from customers.

Following its maiden net profit announcement, Zomato’s market cap breached the $10 billion mark. At the time of its initial public offering in 2021, the food and grocery delivery company’s valuation was $12 billion.