India’s food delivery and restaurant search platform Zomato is negotiating the sale of its UAE business to Germany’s Delivery Hero.
The Indian-based food technology major plans to sell its UAE-based business, which accounts for nearly 20% of its total business, for a value ranging between $200 million and $250 million, Times of India reported.
“Competition in the food ordering and delivery segment is so aggressive of late, with companies signing up thousands of restaurant partners in India in a short span of 10-14 days,” the leading independent business and financial consultant M R Rajaram told Arabian Business.
With competitors in India such as Swiggy, Foodpanda and TinyOwl raising huge funds, Zomato is looking to raise new funds worth $500m to $1 billion in a bid to support its capital.
As the UAE business has generated higher average order value than that in India, the foodtech major might obtain a good valuation in case of divestment.
After remaining a restaurant discovery platform for years, Zomato was co-promoted by Deepinder Goyal and Pankaj Chaddah to enter countries such as the UAE, Philippines and South Africa.
It is worth mentioning that the Berlin-based Delivery Hero first entered the Middle East market in 2015 after acquiring Talabat.com.