Online food delivery and restaurant search platform, Zomato has sold its UAE business to Delivery Hero, a Germany headquartered food delivery service for $172 million.
The Gurgaon headquartered firm which is an arch-rival of Swiggy has also raised another $105 million in its latest funding round. Zomato informed that its UAE business was managed by Talabat Middle East and will continue to operate its allied businesses incorporating ad sales, Zomato Gold etc.
Naspers which backs Delivery Hero also owns a majority stake in Swiggy and infused $660 million in the platform in its last round of investment.
Zomato, on the other hand, is backed by Info Edge, Ant Financial and Sequoia Capital and has secured $105 million as part of its series I funding. Prior to this, it had raised $210 million from Ant Financial in October 2018, making its valuation touch $2 billion.
The company’s co-founder Pankaj Chaddah made its exit last year and the platform since then has been on a lookout for its next round of funding. Zomato’s food delivery wing contributes about 55 per cent of its total revenue.
Zomato registered a 40 per cent revenue growth in its FY18 revenue which touched INR 466 crores as against INR 390 crore in the year-ago period. The move comes at a time when food delivery segment in India is witnessing an aggressive consolidation.