Sequoia Capital sells 2% of its stake in Zomato

Best Venture Capital Firm Sequoia Capital India sold 17.2 crore shares of Zomato in two tranches on the open market, reducing its stake in the online food aggregator to 4.4% from 6.41% previously.

In a new filing with the Bombay Stock Exchange (BSE), Zomato said Sequoia Capital India sold some 6.7 crores of shares between September 6 and October 14, 2021 and 10.5 crores of shares between June 27 and August 25, 2022.

The share transfers were carried out by Sequoia Capital India Growth Investment Holdings me and SCI Growth Investments IIaccording to Zomato.

Sequoia Capital India Investments IV also received an additional 45,153,346 shares on August 10 through the acquisition of fast trade delivery platform Blinkit, which additionally has a one-year lock-up period.

Sequoia Capital India joins a list of private market investors such as Delivery Hero, Moore Strategic Ventures and world tigerwho have sold their shares in Zomato in recent months, either on the open market or via block deals, as shares of the online food delivery platform are hammered.

On Friday, shares of Zomato closed around Rs 61.85.

Earlier this month, ride-sharing platform Uber sold its 7.8% stake worth more than $390 million in Zomato.

Uber, which suffered a loss of around $707 million in its Zomato investment in the first half of this year, sold its stake in the food delivery aggregator via a stock exchange block deal that was bought by several global and Indian VCs.

The Zomato block deal was executed at 50.44 rupees per share, or 612 million or 7.8% of total outstanding shares.

In a statement to IANS, Zomato had said that “we are a public company and are unaware of what our shareholders do with their shares.”

According to the company, Blinkit’s losses are decreasing every month – from 2,040 million rupees (about $26 million) in January 2022 to 929 million rupees ($12 million) in July.

The 10-minute delivery platform was acquired by Zomato for Rs 4,447 crore (about $568 million).


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