Japan’s SoftBank likely to sell shares in food delivery app Zomato, reports CNBC-TV18
Economy

Japan’s SoftBank likely to sell shares in food delivery app Zomato, reports CNBC-TV18

Zomato, which acquired the quick grocery-delivery startup Blinkit for $538.05 million last year, had issued a 3.55% stake to investor Softbank as part of the deal.

   
The logo of Indian food delivery company Zomato is seen on its app on a mobile phone displayed in front of its company website | Reuters

The logo of Indian food delivery company Zomato is seen on its app on a mobile phone displayed in front of its company website | Reuters

Bengaluru: Japan’s SoftBank Group will likely sell shares in Indian food delivery firm Zomato as the lock-in for investors post the company’s acquisition of Blinkit ends on Aug. 25, CNBC-TV18 reported on Friday, citing sources.

Zomato, which acquired the quick grocery-delivery startup Blinkit for 44.47 billion rupees ($538.05 million) last year, had issued a 3.55% stake to investor Softbank as part of the deal.

U.S.-based firms Sequoia and Tiger Global, who were investors in Blinkit, had also received shares in Zomato after the acquisition.

Shares received by the investors will unlock for trading on Aug. 28, CNBC-TV18 said. Zomato and Softbank declined to comment on the report.

The broadcaster’s report did not specify if Softbank plans on selling its entire stake in Zomato.

About 5.07 million shares of Gurgaon-based Zomato changed hands on Friday in a block deal at 91.8 rupees per share, Refinitiv data showed, although the details of the transaction were not known.

Shares were last down about 3.1%.

($1 = 82.6510 Indian rupees)

(Reporting by Biplob Kumar Das in Bengaluru; Editing by Savio D’Souza and Eileen Soreng)

Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.


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