November 30, 2022

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Sequoia Capital India reduces stake in Zomato, sells inventory in two tranches

Sequoia Capital India has joined the ever-increasing record of personal traders promoting their stakes in Indian meals supply big Zomato, whose shares have taken a flip for the more serious over the months. A submitting with the BSE confirmed that the enterprise capital agency bought a complete of two% of its stake within the meals supply aggregator.

The submitting with the BSE exhibits that Sequoia Capital India bought a complete of 17.2 crore pre-IPO shares of Zomato in two phases since final yr.

Between September 6-October 14, 2021, it bought 6.7 crore shares, and extra just lately (between June 27-August 25, 2022), it bought 10.5 crore shares within the unicorn. Whereas Sequoia Capital India Progress Funding Holdings I bought the primary spherical of shares, Sequoia Capital India Progress Funding Holdings II bought the second spherical.

With the sale of the shares within the two tranches, Sequoia’s stake within the Gurugram-based Zomato fell from 6.41% to 4.4%. Nonetheless, it has obtained 4.5crore incremental fairness shares of Zomato this August as a result of meals supply unicorn’s acquisition of Blinkit by Zomato in a inventory swap deal, and these shares have an extra lock-in interval of 1 yr.

This aggressive sale of Zomato shares by completely different traders comes quickly after the top of the one-year lock-in interval for 78% of Zomato’s shares (which quantities to round 613 crore shares) ended on July 23. The unicorn’s shares have taken a heavy beating this yr, and closed at ₹68.85 per share on Friday, representing a steep fall of over 50% from its peak value of ₹169.10 in November 2021.

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With this, Sequoia joins funding agency Tiger World, cab aggregator Uber, and funding firm Moore Strategic Ventures to dump its shares within the Indian unicorn.

Moore was one of many earliest non-public traders (the primary, to be extra exact) to dump its stake within the meals supply and restaurant aggregator, promoting its whole stake of 4.25 crore shares quickly after the lock-in interval ended. It exited Zomato at a loss.

Tiger and Uber bought their stakes at the start of this month – whereas the funding main bought 2.34% of its Zomato stake, Uber offloaded its whole stake of seven.8% by promoting 612 million shares by a number of block offers and exiting Zomato completely.