China's Alipay exits Zomato after selling 3.44% stake for Rs 3,337 crore

Alipay Singapore Holding, part of the Alibaba Group, has sold its entire 3.44% stake in Indian food delivery giant Zomato, marking its complete exit from the company that battles with Swiggy.

The sale, which was conducted through open market transactions, amounted to Rs 3,337 crore (approximately $395 million), according to data available on BSE.

How many shares were sold?

According to data shared by exchanges, The transaction involved selling over 29.60 crore shares in 31 tranches on the Bombay Stock Exchange (BSE). The shares were sold at an average price of Rs 112.7 each. Key buyers included global and Indian financial giants like ICICI Prudential Life Insurance, Max Life Insurance, and Morgan Stanley, among others.

Alibaba's remaining stake in Zomato

Despite this exit, Alibaba Group retains a stake in Zomato through Antfin Singapore Holding Pte Ltd, owning 6.39% at the end of the September 2023 quarter. The stake sale follows a previous divestment by Alipay Singapore in November last year.

Following the announcement, Zomato's shares experienced a surge, closing 2.55% higher at Rs 116.70 on the BSE. 

How well Zomato is performing financially?

Zomato has shown a remarkable turnaround in its financial performance. In the second quarter of the fiscal year 2024 (Q2FY24), the company reported a profit after tax of Rs 36 crore, a significant recovery from a Rs 251 crore loss in the same quarter of the previous year.

Revenue also increased by 18% to Rs 2,848 crore compared to the June quarter. The growth is attributed to increased food delivery orders and the success of Zomato Gold. Despite losses in the quick commerce segment, it showed signs of positive contribution for the first time.

Join our new WhatsApp Channel for the latest startup news updates