Zomato Ltd’s pre-IPO investor Moore Strategic Ventures has sold its entire holding in the recently listed food delivery platform, marking its loss for over one year and becoming the first internal investor to make an exit from Zomato, whose market capitalization has fallen below its last private market valuation of $5.5 billion.
The New York-based VC firm had acquired 6,347 compulsorily convertible Series G shares from Nexus Ventures in early 2021 for about Rs 191 crore. When Zomato debuted in the public market last year, these shares were converted to 4.25 crore shares of the food delivery company. Moore Strategic Ventures sold 4.25 crore shares at Rs 44 per share in the online food delivery aggregator firm.
Investors have turned negative for Zomato and other tech startups since the past few months amid concerns of their sky-high valuations. Further, Zomato’s acquisition announcement of quick commerce firm Blinkit aggravated the worries about its path to profitability.
The food delivery company had made a bumper entry on the bourses last year. While its shares were issued at Rs 76 in the IPO, they listed at Rs 115 on the BSE with a premium of over 51 percent. Subsequently, Zomato breached the Rs 1 trillion market capitalization mark and the shares scaled a lifetime high of Rs 169 on the BSE.
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