Zomato Media To Sell Its UAE Food Delivery Business To Delivery Hero Group
Zomato Media Private Limited (Zomato), has entered into an agreement to sell its UAE Food Delivery business to Delivery Hero Group (Delivery Hero) through its fully owned subsidiary Talabat Middle East Services Company LLC for a consideration of about USD 172m. Further, Zomato and DH will enter into Services Agreements basis which Zomato will continue to run the said business on its own platform. Zomato continues to own and run its other businesses such as Ad Sales, Gold etc. in the country.
In addition, Zomato has concluded its ongoing funding round with an additional second tranche of about USD 105m. The new investors in this round include Delivery Hero and Glade Brook Capital. Including the USD 210m fundraise intimated in October 2018, the total amount of equity capital raised in this round of financing amounts to about USD 315m. As a result, upon closing, the shareholding in Zomato will be 26.38% on a fully converted & diluted basis.