Investment firm Tiger Global has cut its stake in Zomato by nearly half to 2.77%, it said on Thursday. Tiger Global’s Internet Fund IV holds a 5.11% stake in Zomato until the end of the lock-in period on July 23.

Zomato said in a regulatory filing that between July 25 and August 2, 2022, the fund sold more than 18.45 crore shares for a combined 2.34% stake in the company.

On Wednesday, Uber Technologies sold 61.2 crore shares, or its 7.78% stake in Zomato, in a block deal of Rs 3,088 crore. The shares were sold at an average price of Rs 50.44 per share.

Most of the shares sold by Uber were acquired by Fidelity Investment Trust’s Fidelity Series Emerging Markets Opportunity Fund, which bought 5.44 crore shares at Rs 50.26 per share.

Uber acquired a stake in Zomato after Zomato acquired local food business UberEats in an all-stock deal in 2020.
When Zomato went public in July 2021, Uber made a nominal Rs 9,000 crore. But it didn’t sell shares during or after the IPO. The same stock was worth a little over a third of that value when sold.

Zomato reported consolidated revenue of Rs 1,141.3 crore in Q1, a sharp increase of 67% from the Rs 844.4 crore reported in the same period last year. Revenue increased by 16.68% month-on-month.

The company reduced its consolidated loss to Rs 185.7 crore in the June quarter, compared with Rs 356.2 crore and Rs 359.7 crore in the previous year and the previous quarter, respectively.

Zomato shares closed 4% higher at Rs 57 per share on the BSE.