Zomato Media, the parent company of the restaurant finding and food ordering application – Zomato, sold its UAE business to Delivery Hero, a food delivery company based in Berlin. The final deal was made for a sum of $222 million which includes equity investments equal to $50 million.
As reported by Times of India, the Gurgaon-based company, Zomato, is said to sell its business in Lebanon and Qatar also to Delivery Hero for $28 million. So, the $172 million deal for the UAE business plus the $28 million deal will take the total transaction between Zomato and Delivery Hero to $200 million.
Zomato has also been reported to close its funding round that had started last October. The company has raised a total of $315 million in the funding round with a whopping $105 million being raised in the latest tranche which saw participation from Delivery Hero backed by Naspers.
Post the funding round, the valuation of the company has gone up to $2.1 billion.
Zomato’s business in the UAE will continue to be managed and operated by Talabat Middle East and the ad sales and Zomato Gold subscription will also be run by the firm.
With the $50 million investment, Delivery Hero has entered the food delivery industry in India. This is the second time the country has made an investment in an Indian food delivery firm. Earlier, it had a stake in TastyKhana but exited after selling the stake to Foodpanda.
Naspers, which invests in Delivery Hero is incidentally the largest institutional stakeholder in Swiggy, Zomato’s food business rival.
Source: Time of India and Economic Times