Zomato’s UAE-wide operations sold to Delivery Hero for $172 million
Germany’s food last mile operator Delivery Hero has purchased the UAE assets of Zomato, as the Indian food-technology logistics company looks to scale back its international operations.
The deal was finalised this week to the tune of US $172-million (Rs1,220 crore) and comes as Zomato looks to beef up its infrastructure in India.
Zomato recently entered supply-chain operations with the launch of its HyperPure warehouse in Bengaluru.
The 30,000 sq ft warehouse will allow the company to supply fresh produce to 2,500 restaurants.
It also announced that it had introduced electric and mechanical bicycles as part of its last-mile delivery fleet.
Delivery Hero, meanwhile, has made an equity investment of US $50-million in Zomato, it’s second Indian investment in the last few years.
Back in 2014, it exited the Indian market after selling its stake in Pune-based TastyKhana to Foodpanda. It sold off its remaining 1% stake in Foodpanda in 2017 when Ola acquired Foodpanda.
The acquisition of Zomato’s UAE operations enables the German company to expand its reach in the UAE food-tech logistics sector, which is growing rapidly.
“Zomato has built a successful food-delivery business in the UAE and India on the back of its restaurant search and discovery app and website,” said Niklas Östberg, CEO of Delivery Hero.
“The acquisition will allow us to further improve our service to customers in the UAE. We are also excited to become a shareholder in Zomato’s rapid food-delivery growth story in India and share our learnings,” he added.
The deal with Delivery Hero does not mean Zomato will exit the UAE completely. While Delivery Hero will own the business, Zomato will continue to operate it.