Zomato may sell its UAE Business

Zomato may sell its UAE Business
Zomato may sell its UAE Business

Gurugram-based food delivery and restaurant discovery company, Zomato, is reportedly in talks with Berlin-based food delivery player Delivery Hero to divest its UAE business. The company may reportedly sell its business for $200-250 million as it looks to focus its resources on its fight against homegrown rival Swiggy. UAE was the first global foray of Zomato in 2012 and soon accounted for 20 per cent of its orders. The company also launched its premium service Zomato Gold in UAE in 2017 and in one year had over 380 restaurant partners for over 15,000 Zomato Gold members. The companies reportedly denied commenting on speculations of the deal. Both Delivery Hero and Zomato have about 35-40 per cent market share in UAE and if the deal goes through, Delivery Hero will become the market leader. In India, Delivery Hero was invested in Foodpanda but later sold it for 1 per cent stake in Ola in 2017. To compete with Swiggy, Zomato has also been in talks to raise a large funding round of $500 million-$1 billion. Zomato recorded $1 in billion annual gross merchandise value. It also posted a 40 per cent growth in its revenue for FY18 and targeted expansion to 100 cities across India. It also claimed to have achieved 28 million in monthly order run rate as of December 2018.

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