Zomato to sell UAE food delivery business for $172 million

(Reuters) - Zomato Media Pvt Ltd will sell its UAE food delivery business to Germany’s Delivery Hero Group for about $172 million, Zomato’s second-largest shareholder Info Edge (India) Ltd said on Monday.

Zomato and Naspers-backed Delivery Hero will then enter services agreements under which Zomato will continue to run the business on its own platform, Info Edge said.

Info Edge, an online services firm, will own a 26.38 percent stake in Zomato after the deal closes.

Zomato raised an additional $105 million in its ongoing funding round with new investors including Delivery Hero and Glade Brook Capital, Info Edge added.

Reporting by Chris Thomas in Bengaluru; Editing by Shailesh Kuber