Chinese financial giant Antfin has further reduced its stake in Indian food delivery platform Zomato, selling 2.1% for $341.5 million on Wednesday. This follows Alipay, another Chinese company, exiting Zomato entirely in November last year.
The stake sale coincides with ongoing tensions between India and China, encompassing border disputes and increased scrutiny of Chinese businesses and investments in India. While the specific reasons for Antfin's divestment remain unclear, the timing raises questions about the impact of geopolitical tensions on cross-border business activities.
This is the second time in recent months that a Chinese company has reduced its stake in Zomato. Despite hitting a record high earlier in March, Zomato's shares closed 2.6% lower on Wednesday following the news of Antfin's sale.
ong-term implications of these developments for Zomato and other Indian companies with Chinese investments remain to be seen.
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