Sequoia Capital India has sold a part of its pre-IPO (pre-initial public offering) shares in Zomato in the open market, bringing down its stake in the restaurant aggregator and food delivery platform to 4.4 percent.
In a filing with the BSE, Zomato said that Sequoia Capital India sold 6.7 crore shares between September 6, 2021 and October 14, 2021 and 10.5 crore shares between June 27, 2022 and August 25, 2022 through its two investment vehicles--Sequoia Capital India Growth Investment Holdings I and SCI Growth Investments II.
Sequoia Capital India has thus sold 17.2 crore shares of Zomato in the open market so far, bringing its stake down to 4.4 percent from 6.41 percent earlier.
It can be noted that Sequoia also received 4.5crore incremental equity shares of Zomato on August 10 on account of the acquisition of Blinkit by Zomato in a stock swap deal. These shares have a further lock-in period of one year from the date of allotment before they can be sold.
Another investor in Zomato, Delivery Hero, which held about 1.6 percent stake in the food delivery unicorn, sold its entire stake in the open market in July 2022, valued at $60 million, according to Delivery Hero's second quarter financials. Delivery Hero had invested in Zomato in 2018.
Sequoia Capital and Delivery Hero join a growing list of Zomato's private market investors that have sold shares after the lock-in period of one year for around 613 crore shares or 78 percent of Zomato’s stock ended on July 23, a number of Zomato's private market investors have sold shares either in the open market or via block deals.
Earlier this month, hedge fund company Tiger Global had effectively sold 18 crore shares of Zomato in the week after the one-year lock-in period for pre-IPO investors ended on July 23. Just a day before Tiger Global sold shares, cab aggregator Uber on offloaded its entire 7.78 percent stake in Zomato, marking its exit from the Indian food delivery giant.New York-based VC (venture capital) firm Moore Strategic Ventures had sold its entire stake of 4.25 crore shares in the company at Rs 44 apiece in Zomato via a block deal in July, booking a loss of Rs 4 crore.