Prominent sovereign investors from Kuwait and Singapore have reportedly increased their shares in the company that owns the Zomato app, a popular food delivery service. This comes at a time when other investors, including Tiger Global and SoftBank, have fully divested from the company, reported Al-Qabas Daily.
According to a recent report on Economic Time’s website, the General Investment Authority purchased 88 million shares of the Zomato application in September 2023. Later, in December of the same year, they added an additional 6.7 million shares to their stake in the application.
Similarly, Singapore’s sovereign fund, Temasek, acquired 95 million shares in the Zomato app in December, having previously held 169 million shares. Mutual investment funds have also significantly increased their stakes in the application. Their ownership in Zomato reached an estimated 12.3% in December 2023, doubling their previous year’s stake of 5.7%. The report highlights that the rise in shares held by sovereign entities like Kuwait and Singapore coincided with the exit of other investors, particularly Tiger Global and SoftBank.
In August of the previous year, Tiger Global divested from Zomato by selling its 1.44% stake in the company’s shares. These developments suggest growing confidence and interest from sovereign investors in the Zomato app, reflecting their belief in the potential and profitability of the food delivery sector. Zomato’s success has attracted substantial attention in the investment community, making it an attractive venture for various entities.
As Zomato continues to expand its operations and capitalize on the increasing popularity of food delivery services, the support from sovereign investors could fuel further growth and development. The increased participation of mutual funds also adds to the positive sentiment surrounding the company. Zomato’s success story not only represents a significant milestone for the company but also indicates the robustness of the global food delivery market.