News Headline: Alibaba Affiliate Ant Group Sells 1.54% Stake in Zomato Block Deal.
Antfin Singapore Holding Pte. Ltd has reportedly sold what is its stake in the Indian food delivery company Zomato.
Ant Group formerly known as Antfin is an affiliate of the Chinese conglomerate Alibaba Group. Some websites quote that Ant Group sold shares valued at Rs. 5438.50 crore, while others claim the affiliate to have sold shares worth Rs. 4771 crore.
This share transaction took place in a block deal or through an open market. Antfin was reported to have a 4.24% stake in Zomato and had sold a 2% stake through the open market in March.
Table of Contents
Zomato’s History
Zomato (formerly FoodieBay) is an Indian multinational restaurant aggregator and food delivery company based in India. Its biggest competitors in the food delivery app are Swiggy, Uber Eats, and Foodpanda in India.
The company was founded by Deepinder Goyal and Pankaj Chaddah in 2008. It is headquartered in Gurgaon, Haryana, India with its business expansion in the Middle East and Singapore.
The company’s subsidiaries include Blinkit (a grocery delivery app) and Hyperpure ( a one-stop shop for HoReCa).
Share Price: INR 263
Ant Group’s History
Ant Group (formerly Ant Financial) was founded in 2014 by Jack Ma who is also the founder of eCommerce giant Alibaba.
The company is headquartered in Hangzhou, China, and has subsidiaries in Alipay, Huabei, MYbank, Jiebei, and more.
Market Impact of This Zomato Block Deal
From a market perspective, the sale could introduce additional volatility in Zomato’s stock price as investors react to the news.
Zomato’s share price fell from INR 275 to INR 263 which shows concerns over the early exit of its investors.
But that doesn’t stop the food delivery app anywhere and increases the chances of exploring partnerships with new investors.
Conclusion
This news article on Zomato Block Deal highlights the potential sale of Ant Group’s 1.54% stake in Zomato and discusses its effect on both companies and the market. It is important to keep an eye on further strategies of the food delivery giant in India.
🌟 FAQs | Zomato Block Deal
What are the possible reasons behind this block deal?
One of the possible reasons for Ant Group selling its stake could be high competition in the food delivery sector in India. This might include regulatory concerns over food quality.
How will the Zomato block deal affect Zomatos share price?
For sure, the share price is expected to go down but this could also create an opportunity for other investors looking to buy shares at a lower price.
What is the future of Zomato?
Zomato is not going anywhere with its ability to adapt to the latest SEO technologies and its subsidiaries now include Blinkit.
What is a block deal?
A block deal is an open market deal that involves a large number of share transactions between two concerned entities.
Who are the biggest investors in Zomato?
Apart from Ant Group, Zomato investors have a long list including Sequoia Capital, Bharati Balakrishnan, and more institutional and Angel investors.
Who is the CEO of Zomato?
Deepinder Goyal is the CEO of Zomato with notable investments in Shiprocket, Unacademy, and Blinkit.
Who is the CEO of Ant Group?
Eric Jing is the CEO of Ant Group, an affiliate of the conglomerate Alibaba Group.
