Uber is thought to be selling its Uber Eats business in India for $400 million
- Uber Eats will reportedly sell its Indian business to a local rival, Zomato, for $400 million.
- According to TechCrunch, Gurugram-headquartered Zomato could receive between $150 million and $200 million of investment from Uber as part of the deal.
- Zomato, which also aggregates restaurants and operates in many countries around the world, is thought to be close to finalizing a $600 million funding round.
- A spokeswoman for Zomato declined to comment, while Uber did not immediately respond to Business Insider's comment request.
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Uber will reportedly sell its Indian Uber Eats business to local rival Zomato for $400 million.
That's according to TechCrunch, which claims negotiations are at "advanced stages." Reports of Zomato's possible acquisition of Uber Eats' Indian business first emerged last month.
Uber itself may retain ties with Zomato by investing between $150 to $200 million in Zomato and a "sizable stake" in the firm, the report adds. Business Insider has contacted Zomato and Uber for comment. Uber did not immediately respond, while a Zomato spokeswoman said the firm "doesn't comment on rumors and speculations."
Though Zomato has a global presence and has existed since 2008, it is headquartered in the north Indian city of Gurugram, and thereby represents a domestic competitor to Uber Eats.
Uber CEO Dara Khosrowshahi said last month that where his company can't reach the number one or number two position in the food delivery market, it will leave.
Uber Eats entered India relatively late, in mid-2017, and was never able to seriously challenge Zomato's presence, with a source telling TechCrunch that its daily orders peaked at 600,000 in comparison to Zomato's daily total of more than 1 million. Uber is also facing stiff competition in the Indian ridehailing space against local rival Ola.
Zomato is also reported to be finalizing a fresh fundraise, thought to hover in the region of $550 million. According to Crunchbase, the firm - which also publishes customer reviews of restaurants - has already raised over $750 million across 15 funding rounds.
The latest, a Series J fundraise of $62 million in March, continued the firm's unusual approach of staging lots of incrementally larger funding rounds, without ever seeming to contemplate an IPO.
