Ride-hailing giant Uber said Tuesday it sold its food delivery business in India to its competitor Zomato in an all-stock transaction.

The sale gives Uber a 9.99% stake in the Indian restaurant aggregator and food delivery start-up.

Zomato is backed by Alibaba affiliate Ant Financial, which recently agreed to invest up to $150 million at a pre-money valuation of $3 billion, according to official filings from Zomato-shareholder Info Edge.

Based on that valuation, Uber's stake in Zomato would be worth around $300 million. Uber declined to comment on the deal's value.

Uber Eats is set to discontinue operations starting Tuesday, and it will direct restaurants, delivery partners and users to the Zomato app.

"India remains an exceptionally important market to Uber and we will continue to invest in growing our local Rides business, which is already the clear category leader," CEO Dara Khosrowshahi said in a statement.

The tech giant is under pressure from investors to turn its business around. Last year, the company reported a $5.2 billion loss in its second-quarter earnings and laid off hundreds of employees in 2019.

Uber will continue competing in the Indian ride-hailing market against start-up Ola. Previously, Uber ceded ground in China and Southeast Asia to local players Didi Chuxing and Grab, respectively and exited its Eats business in South Korea.