Zomato may invest $100 million in Grofers as e-grocer scraps listing plan: Report
Zomato's investment in Grofers is expected to value the grocery firm at $1 billion.
May 07, 2021 / 11:11 AM IST
Zomato filed its DRHP with the market regulator on April 28, stating that will offer equity shares aggregating up to Rs 8,250 crore (nearly $1.1 billion).
Food delivery startup Zomato may invest $100 million in e-grocer Grofers after talks of a merger between the two companies fell through last year.
Maintaining focus on the food business, Zomato wants to expand into the grocery segment through a specialised company instead of building it by itself, a person privy to the deal details told the Economic Times.
Moneycontrol could not independently verify the report.
Media reports earlier suggested that Grofers was in discussions for a listing on the NASDAQ through a merger with Cantor Fitzgerald’s special purpose acquisition company (SPAC).
The Indian grocery startup now reportedly plans to scrap the listing plans. Zomato's investment in Grofers is expected to value the grocery firm at $1 billion, the publication added.
“We are in regular touch with the investor ecosystem and are seeing a lot of inbound interest given grocery is an essential need and a high growth segment," Grofers said in an email to the publication. "Given the dynamic business environment, there will always be room for speculation, but our team is focused on serving more families."
Zomato had stepped into the grocery delivery business in the initial months of the COVID-19 pandemic but scrapped it, saying that it was not its core business.Zomato has filed its Draft Red Herring Prospectus (
DRHP) with the Securities and Exchange Board of India (SEBI) on April 28. According to the DRHP, the company will offer equity shares aggregating up to Rs 8,250 crore (nearly $1.1 Billion). Of this, Rs 7,500 crore will be fresh issue, while Rs 750 crore will be an offer for sale for its existing investor Info Edge.