In a significant move within the digital marketplace, Antfin Singapore Holding, associated with Alibaba’s Ant Financial Group, has divested 2.1% of its stake in the online food delivery service Zomato, garnering a staggering ₹4,771 crore. According to the Bureau of Securities Exchange (BSE), a total of 18,54,40,550 shares were sold in two separate tranches, valued between ₹257.17 and ₹257.46 per share.
This transaction reduces Antfin’s stake from 4.24% to 2.14%. The growing trend of divestitures by major shareholders in tech companies raises implications for market dynamics and investor sentiment. The precise identities of the buyers remain undisclosed, leaving market analysts to speculate on possible future movements.
Shares of Zomato saw a minor uptick following the news, closing at ₹263, marking a 0.27% increase. This reflects a robust investor interest, slightly offsetting the magnitude of the stake sale. Just a few months prior, in March, Antfin had similarly reduced its stake by 2% for ₹2,827 crore, which highlights a pattern of significant share reallocations involving these key players.
The financial performance of Zomato has been increasingly robust, as noted in their recently published earnings for the April-June quarter of fiscal year 2024-25. Zomato reported an impressive rise in consolidated net profits to ₹253 crore, a stark contrast to just ₹2 crore in the same period last year. Additionally, revenue from operations skyrocketed by more than 74%, reaching ₹4,206 crore compared to ₹2,416 crore in the previous year. However, total expenses also surged, reaching ₹4,203 crore, which underlines the company’s aggressive growth strategy amid rising operational costs.
Zomato’s multifaceted approach includes expanding its food delivery network, enhancing B2B segments through Hyperpure Supplies, and developing its quick commerce model via Blinkit. These areas not only contribute to its bottom line but also indicate the company’s adaptability to changing market demands.
Recent evaluations by UBS have pegged Zomato’s enterprise value at $15.4 billion for its Blinkit division, reinforcing the company’s competitive positioning in the rapidly growing e-commerce space. Market analysts predict a potential upward trajectory for Zomato’s valuation, suggesting the company may be worth around $32.1 billion—approximately a 15% premium over its current market capitalization of $27.8 billion.
In context, the competitive landscape of food delivery in India is dominated by several key players, with UBS estimating Blinkit’s market share at 40-45%. This is followed by Swiggy’s Instamart, holding 20-25%, Zepto at 15-20%, and Big Basket’s BBNow at around 10-15%. Such dynamics reflect intense competition and vibrant growth prospects within the sector.
In conclusion, the recent divestment by Antfin serves as a critical indicator of the ongoing financial strategies employed by large stakeholders in the e-commerce arena. Zomato’s impressive growth metrics further buttress its position as a leading player in the market. As the food delivery sector continues to evolve, stakeholder actions and performance data will significantly influence investor confidence and market trends in the coming months.
