Online food ordering and restaurant guide Zomato has entered into an agreement to sell its UAE food delivery business to the Germany-based Delivery Hero Group (Delivery Hero) through its fully owned subsidiary Talabat Middle East Services Company LLC for a consideration of about US$172 million, according to a release on the Indian bourses.
Further, Zomato and Delivery Hero will enter into Services Agreements basis which the former will continue to run the said business on its own platform. Zomato continues to own and run its other businesses such as Ad Sales and Gold in the country.
In addition, Zomato has concluded its ongoing funding round with an additional second tranche of about US$105 million. The new investors in this round include Delivery Hero and Glade Brook Capital. Including the US$210 million fund raise intimated in October 2018, the total amount of equity capital raised in this round of financing amounts to about US$315m.
