New Delhi

Tiger Global, a US-based investment company, concluded its exit from the online food delivery service Zomato on Monday (August 28) by selling all of its shares for a total of Rs 1,123.85 crore ($136 million) through its venture capital fund Internet Fund III Pte Ltd, CNBC TV18 reported.

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Tiger Global exited Zomato by selling about 12.35 crore of its shares, realising a transaction value of Rs. 1,124 crore ($136 million) at an average share price of Rs. 91.01 ($1). Tiger Global’s investment relationship with Zomato, a significant participant in India’s food delivery and restaurant discovery markets, came to an end with this transaction.

The sale of Tiger Global’s 1.44 per cent equity ownership in Zomato demonstrates the investment company's strategic choice to make money off of its stake in the online meal delivery service. It’s important to note that Tiger Global had long been a substantial Zomato investment.

Along with Tiger Global, DST Global participated in the share sale through its investment vehicle Apolleto Asia Ltd, selling over 3.2 crore Zomato shares for Rs 288 crore ($34 million).

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According to shareholding information with the Bombay Stock Exchange (BSE), Tiger Global owned a 1.44 per cent investment in Zomato at the end of the June quarter. Tiger Global sold more than 18.45 crore shares on the open market in August 2022, cutting its ownership in the business by nearly half to 2.77 per cent. Before the deal, Tiger Global’s Internet Fund VI Pte owned 5.11 per cent of the online food delivery service.

In the June quarter of this fiscal year, Zomato saw profits for the first time. The company’s food delivery margins increased to 13.6 per cent and operational improvement in the food division both contributed to the profitability.

When contrasted with a net loss of Rs 186 crore ($22 million) during the same period last year, the company’s combined net profit for the first quarter of this fiscal year was Rs 2 crore ($242,000). Comparing the same quarter of the previous fiscal year to the current one, the consolidated revenue from operations increased 71 per cent year over year to Rs 2,416 crore ($292 million) from Rs 1,414 crore ($171 million).

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