Uber recently sold its Indian food delivery platform, Uber Eats to another food-delivery platform, Zomato for $206 million.
Back in January, Uber announced that it had sold the India business of Uber Eats to Zomato for a 9.99% stake in the loss-making Indian food delivery startup. However, the two companies had not disclosed the terms of the deal.
As reported by TechCrunch, the business of Uber Eats India was valued at about $180 million. However, in the filing, Uber revealed a different number, where it said the “fair value of the consideration” for Uber Eats India business from Zomato was nearly $206 million. This valuation amount included $35 million of “reimbursement of goods and services tax receivable from Zomato.”
In an interview with Indian news agency PTI, Zomato co-founder, and chief executive, Deepinder Goyal said the company was in the process of raising as much as $600 million by the end of January. The company has yet to secure the rest of the capital.
With the exit of Uber Eats from the food delivery industry, there remains a duopoly between the Zomato and Proscus Ventures-backed Swiggy.
Unlike in developed markets of the country such as the US, it is difficult for Indian companies to find the path to profitability in the Indian market. With this fact in place, both the Indian food delivery startups struggle to find a path to profitability as they spend more than $15 million each month to gain new customers while retaining the existing ones.
Amazon Launches Amazon Academy in India
Google Pulls Several Loan Apps From Play Store In India
Tesla Makes Entry In India, Registers R&D Unit In Bengaluru
IBM Tops 2020 U.S. Patent List; IBM India 2nd Highest Contributor
SAP Invests €55M to Accelerate Its Cloud Strategy in India
© 2021 CIO Bulletin. All rights reserved.