Softbank to Cut Stake in Zomato; May exit

Japanese tech-giant SoftBank’s venture capital fund SVF Growth, Singapore, is planning to sell 1.1% stake in Indian food delivery firm Zomato for 10.24 billion rupees ($123.24 million).

According to the reports, SVF Growth will sell the stake at an offer price of 109.4 rupees to 111.65 rupees per share, a 2% discount to its current market price at the lower end, the report added.

In August, SoftBank’s Vision Fund sold a 1.17% stake in Zomato in a deal valued at 9.47 billion rupees at 94.7 rupees apiece in bulk deals.

Similarly, private equity firm Tiger Global, also sold its remaining 11.24 billion rupees stake in the company after cutting 2.34% stake last year.

Zomato shares have gained 88.3% so far this year and closed 1.4% lower on Thursday.

A majority of Zomato shares are owned by just three venture capital investors, namely, Softbank, Sequoia, and Tiger Global.