Uber lost $245 million on its Zomato investment in the second quarter of 2022, and $707 million in the first half of the year, the company said as it announced its results for Q2.
According to reports, Uber may offload its stake in Zomato on August 3.
Uber’s losses for the quarter came in at $2.6 billion, and said $1.7 billion was from investments and a reevaluation of stakes in Zomato, Aurora and Grab. The company said that this was part of its unrealised gain on investments. Uber said its equity stake in Zomato as of June 30, 2022 was $0.4 billion.
Uber had sold Uber Eats in India in an all-stock transaction to Zomato in 2020 for a 9.99% stake, and currently holds 7.78% in Zomato.
As of June 30, 2022, Uber owned approximately 612 million (61.12 crore) shares of Zomato.
When Zomato listed on the bourses in 2021, Uber’s stake was worth $1.2 billion.
During the quarter, Uber said it had unrealised loss of $1.1 billion on its Aurora investment, $520 million on Grab and $1.4 billion on Didi.
This comes after Zomato’s shares fell to a record low on July 25 after the one-year lock-in period for its pre-IPO investors expired. The lock-in period for around 613 crore shares ended on July 23. Its shares gained nearly 20% on August 2 after its consolidated loss nearly halved year-on-year to Rs 186 crore for the quarter ending June.
This also comes after Bloomberg reported Uber explored selling its India ride-hailing business, but discussions were later suspended. Uber CEO Dara Khosrowshahi said there was “zero truth” to it and it wasn’t explored or considered.
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