Uber is in final stages to close a deal to sell its food delivery platform UberEats’ India business to local rival Zomato, as the American ride-hailing giant looks to cut its spending, three people familiar with the matter told TechCrunch.

The deal valued UberEats’ India business at around $400 million, one of the sources said. As part of the deal, UberEats would get a sizeable stake in Zomato, and Uber would further invest $150 to $200 million in the 11-year-old Indian firm, people said.

A spokesperson for Uber declined to comment. A text to Zomato founder and chief executive Deepinder Goyal, who met Uber executives last week, remained unanswered.

The deal comes at a time when Zomato is in final stages to close a new financing round of $600 million, Goyal told news agency PTI last week. TechCrunch reported earlier that China’s Ant Financial was close to leading a financing round of up to $600 million in the 11-year-old firm.

More to follow…