New Delhi, Aug 29, 2023 - In a significant development in the world of investments, Tiger Global Management, the prominent US-based investment firm, has successfully exited its position in Zomato, one of India's leading online food delivery platforms. The exit involved the sale of its entire shareholding, amounting to a staggering Rs 1,123.85 crore, making it one of the most notable exits in the Indian tech and startup ecosystem.
Tiger Global Management, through its venture capital fund, Internet Fund III Pte Ltd, had been a long-time investor in Zomato. The investment firm initially invested in the food delivery giant in 2010 when Zomato was still primarily known for its restaurant discovery platform. Over the years, as Zomato evolved and expanded its services to include food delivery, Tiger Global continued to support the company.
However, the recent exit signals a change in the investment strategy of Tiger Global, which has been an active participant in India's thriving startup ecosystem. The decision to sell its entire shareholding in Zomato comes amidst the backdrop of Zomato's remarkable journey from a startup to a publicly-traded company.
Zomato's Initial Public Offering (IPO) in July 2021 was met with resounding success, and the company's shares have seen significant fluctuations since then. The investment community closely watched Zomato's stock performance, which reached an all-time high and later faced adjustments in valuation.
Tiger Global's decision to exit Zomato at this juncture could be seen as a strategic move to realize substantial gains from its investment. The Rs 1,123.85 crore exit not only underlines the company's successful investment but also reflects the confidence it has in the Indian startup ecosystem.
Zomato, founded in 2008, has become a household name in India. It has been at the forefront of transforming how Indians dine, order food, and explore restaurants. The company's journey from a restaurant discovery platform to a comprehensive food delivery service mirrors the evolution of the Indian food tech industry.
Commenting on this development, a spokesperson for Tiger Global Management stated, "We are pleased with the journey of Zomato and the returns it has generated for our investors. Tiger Global remains committed to supporting innovative companies in India and around the world."
This exit comes as part of a broader trend of Indian startups attracting global investments. India's burgeoning technology and startup ecosystem have attracted significant attention from international investors in recent years. Zomato's IPO, in particular, was a milestone moment that highlighted India's potential as a hub for technology and innovation.
As Zomato continues to navigate the competitive landscape of the food delivery industry, this exit by Tiger Global Management will undoubtedly be seen as a significant moment in the company's history. It's a reminder of the dynamic nature of the startup world, where investors adapt their strategies to seize opportunities and maximize returns.
The Indian startup ecosystem, with its innovative ideas and rapid growth, continues to be a magnet for global investors, and events like these further solidify India's position on the global tech investment map.
Disclaimer: The above article is for informational purposes only and should not be considered as financial advice or an endorsement of any investment decisions. Readers are advised to conduct their research and seek professional guidance when making investment choices.