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Ant Financial has secured the rights to become the largest stakeholder in the Indian restaurant discovery and food-delivery startup Zomato, replacing Info Edge, Zomato’s earliest backer.
According to its updated Articles of Association, the agreement is part of Ant Financial’s US$ 200 million investment in Zomato made in this year’s February, giving the Chinese company greater control over the company as compared to other stakeholders.
According to documents, Ant Financial’s share can be subscribed to by its parent company, Alibaba, the Chinese e-commerce company.Ant Financial has gained around 20-22% stake in the company, while Info Edge stake consisted of 31%. Zomato co-founders, who exited the company together, Deepinder Goyal and Pankaj Chaddah, have about 14-15% stake.
According to the affirmative rights, Zomato cannot integrate into a market where the ‘Ant Ecosystem Wallet’ is absent, or exit a market where the ‘Ant Ecosystem Wallet’ is present, without the approval of Ant Financial. The ‘Ant Ecosystem Wallet’ is an electronic wallet or mobile money business operated by a company in which Ant Financial owns at least a 15% stake.
