Alibaba Selling Zomato Shares Worth $200 Million

The Chinese major will sell its 3.5 per cent share in the online food aggregator through a block deal.

Alibaba Selling Zomato Shares Worth $200 Million
Despite sharp revenue growth, the company has been in the news for all the wrong reasons.

CHINESE multinational Alibaba will sell its shares in Zomato for $200 million through a block deal, media reports say. The e-commerce major owns a 3.5 per cent stake in the online food aggregator.

Back in August, venture capital firm Sequoia Capital India had sold 17.2 crore shares of Zomato in two slices in the open market, cumulatively lowering its stake from 6.41 per cent to 4.4 per cent.

Others who have offloaded their stake in Zomato are Uber – which sold its 7.8 per cent stake worth over $390 million in the same month as Sequoia. 

On the National Stock Exchange, Zomato’s stock had a quoting price of  Rs 65.25 at 4 pm. This is in stark contrast to last year, for the same date, when it was commanding Rs 145. This year alone, its share prices have fallen by 55 per cent.

For Q2FY23, Zomato’s consolidated net loss was Rs 250.8 crore as opposed to the Rs 434.9 crore loss registered in the same quarter of the previous year. Its revenue from operations zoomed 62.20 percent YoY to Rs 1,661.3 crore.

Zomato has not been faring too well, considering the recent spate of exits at the senior level. Moreover, the company also plans to cut its workforce down by 4 per cent.

Zomato refused to comment when contacted by IANS.

With inputs from IANS.

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