Gurgaon-based Zomato Sells UAE unit to Delivery Hero
Gurgaon-based Zomato Sells UAE unit to Delivery Hero

Restaurant discovery and reservation platform Zomato has sold its UAE delivery business to Berlin-based Delivery Hero for $172 million (Rs 1,220 crore).

Zomato has also raised $105 million in its latest funding round, with Naspers-backed Delivery Hero also participating in the round.

The $315-million round, which has been ongoing since last year, values the company at $2 billion. Talabat Middle East, which operates Zomato’s UAE business, will continue to own and run its allied businesses in that market, such as Zomato Gold and ad sales.

Delivery Hero invested $50 million in Zomato, marking its second entry into the Indian food-delivery space. In 2014, it exited India after selling its stake in Pune-based TastyKhana to Foodpanda, which is now owned by Ola.

“The acquisition will allow us to further improve our service to customers in the UAE. We are also excited to become a shareholder in Zomato’s rapid food-delivery growth story in India and share our learnings,” said Niklas Östberg, CEO, Delivery Hero.

The German group said the acquisition of the UAE delivery business would add 1.2-million monthly orders and $2-million monthly revenue to Delivery Hero’s Middle East and North Africa business.

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