The logo of Indian food delivery company Zomato is seen on its app on a mobile phone displayed in front of its company website in this illustration picture taken July 14, 2021. REUTERS/Florence Lo/Illustration/Register now for FREE unlimited access to Reuters.comHONG KONG/NEW DELHI, Aug 3 (Reuters) - Uber Technologies (UBER.N) on Wednesday sold its 7.8% stake in Indian food delivery firm Zomato Ltd (ZOMT.NS) for $392 million via a block trade on local exchanges, two sources familiar with the matter told Reuters.The deal was executed at 50.44 rupees per share, they said. Zomato and Uber did not immediately respond to requests for comment.Shares of Zomato Ltd fell as much as 9.6% to 50.25 rupees on India's Bombay Stock Exchange (BSE). The stock cut some losses later and was trading down 5.7% by 0634 GMT. On Tuesday, Zomato's stock had closed at 55.6 rupees on BSE.Register now for FREE unlimited access to Reuters.comReuters reported on Tuesday the offer size of the block deal was set to be 612 million shares, according to its term sheet, which did not disclose the seller. read more As per Reuters calculations, the stake sale by Uber was worth 30.87 billion rupees ($392 million).Uber on Tuesday reported a net loss of $2.6 billion for second quarter of 2022, of which $1.7 billion was related to its equity investments, including its Zomato stake. read more Its stake sale comes at a time when Indian startups are struggling to raise fresh capital amid a global market slump and criticism of sky-high valuations, after a blockbuster $35 billion in total fundraisings in 2021. read more NEW BUYERSBofA Securities was the sole bookrunner for the transaction.One of the sources said the stake was bought by around 20 global and Indian funds, including Fidelity, Franklin Templeton and India's ICICI Prudential.Fidelity could not immediately be reached for comment, while Franklin and ICICI declined to comment.Zomato said on Monday it had recorded more orders and narrowed its loss for the June quarter to 1.86 billion rupees from 3.56 billion a year earlier. read more The Indian food delivery company is also considering reorganising its management so its individual businesses would each have a CEO, while the parent company would be renamed "Eternal". read more Backed by China's Ant Group, the company made a stellar debut on July 23, 2021 on the Mumbai stock market, but its shares have lost more than 50% of their value since then on concerns about valuations and growth amid turmoil among global growth stocks.Register now for FREE unlimited access to Reuters.comReporting by Scott Murdoch in Hong Kong and Aditya Kalra in New Delhi
Additional reporting by Chris Thomas in Bengaluru
Editing by Stephen Coates and Mark PotterOur Standards: The Thomson Reuters Trust Principles.Scott MurdochThomson ReutersScott Murdoch has been a journalist for more than two decades working for Thomson Reuters and News Corp in Australia. He has specialised in financial journalism for most of his career and covers equity and debt capital markets across Asia based in Hong Kong.
Uber sells 7.8% stake in India's Zomato for $392 million -sources.