The companies are now in a period of exclusivity though no agreement has been signed yet
Uber is in talks with Zomato to finalise a share-swap deal for UberEats, its food-delivery business in India, sources told The Economic Times. The ride sharing app is planning to infuse fresh capital up to $200 million (equivalent to around Rs 1,415 crore), as an essential part of the deal, the report said.
Moneycontrol could not independently verify the report.
The fresh investment by Uber might be along with some other investment funds, the article quotes a source as saying. The companies are now in a period of exclusivity, which prevents them from getting engaged with other parties, even though no agreement has been signed yet, the source added.
Zomato won’t find it sensible to acquire UberEats without Uber investing in the joint venture, the article quotes another source as saying.
If Zomato and UberEats manage to finalise the merger successfully, the companies are likely to move way ahead of its biggest rival, Swiggy, in terms of volume.
UberEats had been in talks with Swiggy earlier in 2019 for a share-swap deal, but the deal failed due to issues like tax implications, the report added. Prior to that, UberEats had unsuccessful deal talks with Zomato.The deal is expected to consider the same valuation presently set by the current funding round led by Ant Financial and others investors, the report stated.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.