Uber’s journey with Zomato is over. The ride-hailing company sold its 7.8 percent stake in the loss-making Indian food delivery company for more than $390 million on Wednesday, becoming the latest major institutional investor to sell its shares, people familiar with the matter said.
The U.S. company, which reported a net loss of $2.6 billion in the second quarter, sold its entire holdings of Zomato on Indian exchanges for $392 million.
On Tuesday, Uber said it had an unrealized loss of $707 million on its Zomato investment for the first half of this year and the quarter ended June 30, 2022.
After years of competing with local food giants Zomato and Swiggy, Uber sold its local food delivery business in India to rival Zomato for $206 million. As part of the deal, Uber acquired a 9.99% stake in the loss-making Indian food delivery startup.
Uber did not respond to a request for comment.
Shares of Zomato have struggled throughout the year, falling to a record low last week after a lock-up period for investors who held shares in the company before its IPO ended.
It fell as low as 9% on Wednesday morning before recovering to 52.60 Indian rupees (67 cents) per share, giving the company a market value of $5.25 billion, well below the $13.2 billion valuation it was valued at when it debuted a year ago.
Zomato said on Tuesday that it aimed to break even on EBIDTA in the fourth quarter of next year, and cut its investment in fast commerce Blinkit to $320 million from $400 million.