Online restaurant guide and food ordering firm Zomato will sell its UAE food delivery business to Germany-headquartered Delivery Hero Group for about $172 million, one of the company’s largest shareholders Info Edge said on Monday.
The Gurugram-based firm has also raised around $105 million in the ongoing round of funding, Info Edge said in a filing on the BSE.
“As a result, upon closing, our shareholding in Zomato will be 26.38 per cent on a fully converted and diluted basis,” it added.
As part of the transaction, Zomato Media Pvt Ltd has entered into an agreement to sell its UAE food delivery business to Delivery Hero Group through its fully owned subsidiary Talabat Middle East Services Company LLC. The consideration for the transaction is about $172 million, it added.
In a separate statement, Delivery Hero Group said it would participate in Zomato’s latest funding round by investing $50 million into Zomato’s global business to become a Top 10 shareholder and also enter into a material operational partnership agreement.