Indian startup Grofers is in discussions for listing on the NASDAQ through merger with Cantor Fitzgerald’s special purpose acquisition company (SPAC).
The online grocery delivery platform is considering a May listing for a valuation of $1 billion and is expected to raise $400-500 million in the process, sources told The Economic Times.
Moneycontrol could not independently verify the report.
If it goes through, this would be the first time an Indian company takes up SPAC route make its market debut. Earlier this month, the Playboy Group listed on the NASDAQ using SPAC.
Notably, former Deutsche Bank co-CEO and India-born Anshu Jain is the President of Cantor Fitzgerald which has launched around six SPACs in the United States.
Apart from Cantor Fitzgerald, talks are also on with “a few other SPACs for the listing,” one source said.
The “business plan” of SPACs or blank check firms is merger or acquisition of other companies.
One of the sources told the paper that Grofers also “executed a private investment in public equity (PIPE) from external investors” which has already pushed its valuation to $1 billion.
PIPE is similar to a pre-initial public offering (IPO) price setting round for listing.
The sources also said that the usual IPO route is also under consideration for which Citibank is the lead banker and Credit Suisse is expected to join, along with others.Grofers and Cantor Fitzgerald did not respond to queries on this, as per the report.