Alipay Contemplates $400 Million Stake Sale in Zomato as Food Delivery Giant Explores Diversification

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Chinese payments firm Alipay, a subsidiary of Ant Group, is reportedly considering the sale of its 3.44% stake in the food delivery platform Zomato for approximately $400 million. According to a Reuters report, Alipay is looking to divest its entire stake in Zomato through block deals on Indian stock exchanges, with Bank of America and Morgan Stanley acting as advisers. The transaction is anticipated to occur later this week.

Zomato, led by Deepinder Goyal, recently reported a profit of Rs 2 crore in the quarter ending June, surpassing earlier forecasts. The company experienced a slight increase in food delivery gross order value, reaching Rs 7,318 crore, driven by strong growth in order volume and a modest rise in average order value. Zomato expanded its services into the logistics sector last month with the launch of Zomato Xtreme, enabling merchants to send packages starting at Rs 35. The new offering has a dedicated app, currently available only on Android devices.

This strategic move by Zomato signals its intent to diversify revenue streams beyond food and grocery delivery, including through Blinkit. While food delivery remains a key focus, the company’s ventures into alternative verticals such as Hyperpure and dining are seen as opportunities to optimize costs by leveraging its extensive network of delivery partners. The potential sale of Alipay’s stake adds an intriguing element to Zomato’s evolving landscape, and industry observers will be keenly watching the developments in the coming week.

 

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Alipay Contemplates $400 Million Stake Sale in Zomato as Food Delivery Giant Explores Diversification

Chinese payments firm Alipay, a subsidiary of Ant Group, is reportedly considering the sale of its 3.44% stake in the food delivery platform Zomato for approximately $400 million. According to a Reuters report, Alipay is looking to divest its entire stake in Zomato through block deals on Indian stock exchanges, with Bank of America and Morgan Stanley acting as advisers. The transaction is anticipated to occur later this week.

Zomato, led by Deepinder Goyal, recently reported a profit of Rs 2 crore in the quarter ending June, surpassing earlier forecasts. The company experienced a slight increase in food delivery gross order value, reaching Rs 7,318 crore, driven by strong growth in order volume and a modest rise in average order value. Zomato expanded its services into the logistics sector last month with the launch of Zomato Xtreme, enabling merchants to send packages starting at Rs 35. The new offering has a dedicated app, currently available only on Android devices.

This strategic move by Zomato signals its intent to diversify revenue streams beyond food and grocery delivery, including through Blinkit. While food delivery remains a key focus, the company’s ventures into alternative verticals such as Hyperpure and dining are seen as opportunities to optimize costs by leveraging its extensive network of delivery partners. The potential sale of Alipay’s stake adds an intriguing element to Zomato’s evolving landscape, and industry observers will be keenly watching the developments in the coming week.

 

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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