Alibaba’s Ant to acquire stake in food delivery firm Zomato for $50m

6th February 2018 (Last Updated August 2nd, 2018 06:41)

China’s largest e-commerce firm Alibaba Group Holding’s payment affiliate Ant Financial has agreed to acquire a stake in food ordering and restaurant discovery platform, Zomato, for $50m.

Alibaba’s Ant to acquire stake in food delivery firm Zomato for $50m
India’s food delivery app Zomato may secure new funding Credit: Thomas Schweighofer on Unsplash

China’s largest e-commerce firm Alibaba Group Holding’s payment affiliate Ant Financial has agreed to acquire a stake in food ordering and restaurant discovery platform, Zomato, for $50m.

As per an agreement, Info Edge India will sell a 6.66% stake in Zomato either directly or through its online recruitment-based unit Naukri Internet Services.

Subject to shareholders and other requisite approvals, the transaction will involve a divestment of 32,629 equity shares of Zomato.

Info Edge India owns about 44.74% of the paid-up share capital of Zomato on fully converted and diluted basis.

In addition, Info Edge India revealed that Zomato has signed an agreement to raise $150m from Ant as part of the deal.

Zomato founder and CEO Deepinder Goyal was quoted by livemint.com as saying: “No comments. We are a cockroach company; we are very focused on our work, and this round is not going to change that.”

The expected date of completion of sale/disposal is on or before 15 April 2018.

Zomato owns and operates the website www.zomato.com that generates revenue from advertisements of restaurants and lead sales. During the fiscal year 2016-2017, Zomato recorded net sales of Rs3.32bn ($51.58m).

From Vancouver to Auckland, Zomato is used by millions every day in more than 10,000 cities across 24 countries.