Sequoia Capital India has joined the growing list of private investors who have sold off their partial or full stake in Zomato, which went public last year.
The venture capital firm, the largest in India, sold 6.7 crore between September 6, 2021, and October 14, 2021, and 10.5 crore shares between June 27, 2022, and August 22, 2022, through Sequoia Capital India Growth Investment Holdings I and SCI Growth Investments II, according to a filing on Friday by Sequoia with the Bombay Stock Exchange (BSE).
Following the sale of shares, Sequoia’s stake in Zomato has shrunk from 6.41% to 4.4%.
Among the other investors who have sold stakes in Zomato in recent months is Tiger Global, which sold half of its shareholding in the food delivery major, bringing down its share in the company from 5.11% to 2.77%. Before this, Uber made a complete exit by selling its 7.8% holding in the food delivery firm in a block deal.
Since the lock-in period for pre-IPO investors ended in July, firms like Moore, Delivery Hero, and D91 have sold their stakes. Cayman Islands-based Moore exited completely from its investment through a block deal in July.
The sale spree may be based on Zomato’s lopsided performance on the stock exchange. At the time of filing this copy, Zomato shares were trading at Rs 61.65 per share, recording a nearly 50% drop from its peak price.
Stock swings aside, Zomato reported earlier this month that its revenue from operations surged 67.44% YoY to Rs 1,413.90 crore in the quarter ending June 2022. The company added that its losses narrowed to Rs 186 crore, down from Rs 356 crore in the same period in the previous year.
The company recently said it is considering an organizational restructuring, renaming itself as Eternal, and is aiming for EBITDA breakeven by FY23.