Largest online food order and delivery business, Zomato will sell its UAE food delivery business to Germany-based Delivery Hero Group for $172 million.
Both Zomato and Delivery Hero will be into a service agreement where
it continues to operate its business on its platform. Info Edge, India’s second-largest shareholder, is likely to own a 26.3% stake in the food delivery business. The food delivery company is present in across 24 countries, but it operates its food delivery business only in India and UAE.
With the stake, Zomato pit against its rival Swiggy in India. Recently, Swiggy was funded $1 billion from its investor Naspers that valued $3.3 billion to the company. To the surprise, Naspers also an investor in Delivery Hero.
The company additionally raised $105 million with the new investors including Delivery Hero and Glade Brook Capital.
The industry executives said that Swiggy clocked nearly 25 million monthly orders in December, whereas Zomato about 21 million. Both the companies are engaged in intense competition in India’s food delivery marketplace. Swiggy is in talks to acquire Uber Eats in India.