Uber Technologies Inc. sold its minority stake in Indian food-delivery company Zomato Ltd. for about $390 million in a block trade, according to data from India’s BSE stock exchange.
The San Francisco-based company sold 612.2 million shares, or 7.8 percent stake, in New Delhi-based Zomato, for 50.44 rupees, or about 64 cents a share, according to a list of bulk deals from the Exchange.
A spokesman for Uber declined to comment.
The sale represents an exit from the Indian food-delivery market for Uber, which sold its Uber Eats unit in the region to Zomato in 2020 in return for a stake in the startup. Uber has held stakes in companies including Didi Global Inc. and Grab Holdings as a way to maintain a presence in certain markets where competing with local rivals proved costly.
Offloading the stake “may be a precursor to exiting from more unprofitable delivery markets,” wrote Bloomberg Intelligence analyst Mandeep Singh. “The sale will help offset Uber’s $3.1 billion cash burn in that segment since 2018.”
Uber reported second quarter results on showing a net loss of $2.6 billion due to unrealized losses from stakes in Grab, Aurora Innovation Inc. and Zomato. Chief Executive Officer Dara Khosrowshahi has said the company will be looking to monetize non-strategic stakes over time.
Still, Uber jumped after the earnings report and extended gains, with analysts at Raymond James upgrading the stock to outperform and citing strong momentum in the company’s rides business, combined with attractive valuations.