SoftBank to sell $123 Million Worth Stakes in Zomato, Share Price Falls

The Indian food delivery sector is buzzing with activity as SoftBank’s venture capital fund, SVF Growth, prepares to make a strategic move. Reports have surfaced that SVF Growth intends to divest a 1.1% stake in the prominent food delivery company, Zomato, for a substantial 10.24 billion rupees, which equates to approximately $123.24 million. This development sheds light on the dynamic investment landscape, as SVF Growth looks to capitalize on the surging popularity of Zomato, while also offering a compelling discount to potential buyers.

SVF Growth, a venture capital fund under SoftBank, is reportedly planning to sell a 1.1% stake in Zomato, the Indian food delivery company. This transaction is valued at 10.24 billion rupees, equivalent to $123.24 million, according to sources cited by CNBC TV-18. The sale is set to occur at an offer price ranging from 109.4 rupees to 111.65 rupees per share, which represents a 2% discount compared to the current market price at the lower end of that range.

It’s worth noting that SoftBank has not provided an immediate response to a Reuters request for comment, and Zomato has chosen not to comment on the matter. Earlier in August, SoftBank’s Vision Fund had sold a 1.17% stake in Zomato for 9.47 billion rupees at a rate of 94.7 rupees per share in bulk deals.

In a related development, U.S.-based private equity firm Tiger Global had also sold its remaining stake in Zomato, valued at 11.24 billion rupees, following a 2.34% stake reduction the previous year. Zomato’s shares have performed well this year, gaining 88.3%, although they closed 1.4% lower on the day of this report.

As the world of e-commerce and food delivery continues to evolve, SoftBank’s SVF Growth is poised to make waves with its divestment in Zomato. The potential sale of a 1.1% stake for 10.24 billion rupees represents not only a significant financial transaction but also a testament to the ever-changing nature of the Indian food delivery market. Investors and industry observers will be closely monitoring the outcome of this deal, as it unfolds against the backdrop of a year where Zomato’s shares have demonstrated remarkable growth. The intersection of technology, venture capital, and the food delivery sector continues to be a compelling narrative in the world of finance and investment.