Zomato can purchase online grocery retail start-up Grofers. Zomato is a food delivery start-up. Negotiations between the two are going on. Two people related to the case gave this information. This deal will be completely in shares.
Due to Covid-19, the demand for services of Grofers in lockdown has increased a lot. Its price can be put at around 5625 crore rupees (75 million dollars). The SoftBank Vision Fund, which holds the largest stake in the Grofers, can invest around $ 100 to 200 million in the company (Zomato) after the merger. It is one of the largest funds of Japan. Sources associated with this case have given this information.
Softbank has also invested in Uber. In February, Uber sold its food delivery business Uber Eats in India to Zomato. Zomato and Grofers have recently entered into an agreement for the delivery of the grocery. Only after this the negotiations between the two started on deals.
Zomato has recently launched zomato Market. It will deliver groceries. It will carry goods from offline stores with tie-ups to Grofers to customers. If the deal between zomato and Grofers is reached, it will be zomato’s second major acquisition. Earlier this year, it acquired Uber’s food business.
A source connected to the case said that these two startups have been in talks about the deal for the past few weeks. Zomato sees great potential in Grassery. His grocery business started in Delhi NCR has received a lot of orders. This has given a further boost to the negotiation of the deal.