Gurugram-based food delivery and restaurant discovery platform Zomato is reportedly in talks to acquire online grocery firm Grofers in an all-stock deal, reported Economic Times, citing two people privy to the matter.

Japan's SoftBank Vision Fund, which is the largest shareholder in Grofers, may look to invest around $100-200 million in the merged entity, said the report. Notably, SoftBank is also an investor in Uber, and in February, Uber sold its India food delivery business UberEats to Zomato.

The development comes at time when Zomato launched 'Zomato Market' for delivery of essential products and announced a tie-up with Grofers to deliver essential items during the nationwide lockdown due to Coronavirus. Zomato launched 'Zomato Market' was launched around the country amid the lockdown.

Venture capital fund Sequoia Capital is a common investor in both Zomato and Grofers. Zomato is currently valued at around $3.2 billion, while Grofers is valued at around $750 million (around Rs 5,700 crore) post its last funding round led by SoftBank Vision Fund in December.

In September last year, Grofers had announced to add 700 Kirana Stores onto its network and targeting $1 Billion in revenue by 2019-end.

If the deal materializes, it will be the second big acquisition made by Zomato which acquired the Indian operations of UberEats earlier this year to bolster its food-delivery offering in the domestic market.

In an event in December last year, Zomato Founder & CEO Deepinder Goyal had said that Zomato is looking to raise up to USD 600 million (around Rs 4,276 crore) by January this year.

Post a Comment

Previous Post Next Post
Like this content? Sign up for our daily newsletter to get latest updates.