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Zomato seeks CCI approval to buy stake in SoftBank backed Grofers
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Food delivery service Zomato on Wednesday filed a proposal with the Competition Commission of India to acquire a 9.3% stake in SoftBank backed grocery etailer Grofers.
The market-bound delivery app was looking to invest about $100 million (Rs 736 crore) in Grofers, The Economic Times had reported in May.
Grofers had signed a deal with Zomato and Tiger Global to raise $120 million valuing the etailer at a little over $1 billion and welcoming it to 2021’s growing list of unicorns, media reports said.
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Zomato in April filed for an initial public offering (IPO) of up to Rs 8,250 crore to issue fresh shares worth up to Rs 7,500 crore.
Zomato, a public limited company that was incorporated on 18 January 2010, primarily operates in the food services market and provides a platform that connects customers, restaurant partners and delivery partners.
The Delhi-based firm was founded by Deepinder Goyal and Pankaj Chaddah in 2008. It has its reach in 24 countries across 10,000 cities.
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Grofers, founded by Albinder Dhindsa and Saurabh Kumar, began operations in 2014. It expanded rapidly in initial years and raised more than $150 million from the likes of SoftBank, Tiger Global, Sequoia and other investors.
In other deals in the foodtech sector, the CCI in April approved Tata Digital’s proposal to acquire a majority stake for about $1 billion in Supermarket Grocery Supplies (SGS), the parent company and B2B operator of e-grocer BigBasket, Grofers’ largest rival.
VCCircle reported that SoftBank Vision Fund 2 was expected to invest approximately $450 million in Swiggy. The deal will mark Masayoshi Son led SoftBank Group Corp’s first direct bet in the sector in India.
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In April, Zomato added five independent directors to its board of which four were women.