Zomato, Grofers Deny Reports of Merger Talks

Zomato Extends Gold Memberships by Two Months as Staff Take 'Voluntary' Salary Cuts
Gurugram-based meals supply platform Zomato and e-grocer Grofers on Tuesday refuted reviews that they’re in acquisition or merger talks after reviews surfaced that Zomato might purchase Grofers for almost $750 million.

Flush with funds, Zomato presently partnered Grofers for the supply of important gadgets – together with different FMCG and grocery shops — to satisfy the surge in demand amid social distancing and nationwide lockdown that has now been elevated until May 3.

In a press release shared with IANS, Zomato stated that the corporate has partnered with Grofers, together with different FMCG firms, native groceries shops and fashionable retail chains, to pilot its grocery supply service. “We are not aware of any other conversation with Grofers,” a Zomato spokesperson added.

A Grofers spokesperson added: “The news on the merger is a pure speculation and completely untrue. Grofers is the country’s biggest online grocery retailer and has been growing at 2x every six months.”

After preliminary hiccups, Zomato has began grocery supply in over 80 Indian cities with supplying necessities like aata, dal, milk, greens and gadgets and for this, it has partnered current gamers like Grofers.

According to Prabhu Ram, Head-Industry Intelligence Group, CyberMedia Research (CMR), firms are taking a look at artistic pivots to remain related by pursuing new development alternatives on the again of the brand new coronavirus pandemic.

“Expanding into near adjacencies is a given for companies, such as Zomato. From Zomato’s perspective, a partnership or acquisition of Grofers would provide it a good leg-up in its competition with Swiggy to win big in the grocery delivery segment,” Ram advised IANS.

Online meals and grocery retail is predicted to the touch $10.5 billion by 2023, in accordance with a latest report by Bengaluru-based market consulting agency Redseer.

Zomato CEO Deepinder Goyal who’s bullish on on-line supply of important gadgets, has stated that their supply community within the nation is barely second to India Post.

“We are putting in every effort to make sure that we put it to good use to serve the community. We’d like to thank the government authorities, grocery stores, FMCG companies & other start-ups that have come forward to partner with us and support the community in this endeavor,” Goyal stated lately.

Zomato is presently valued at almost $3.2 billion whereas Grofers’ valuation is round $650 million. Menlo Park, California-based Sequoia Capital is a typical investor in each the supply platforms. Zomato in January acquired Uber’s Food supply enterprise in India – UberEats — in an all-stock deal for almost Rs 2,500 crore. Uber has 9.99 per cent stake within the Goyal-led meals supply platform.

Japanese conglomerate SoftBank, the most important investor in Grofers, can be more likely to pump in round $100 million in Zomato.

Media reviews stated final week that Zomato has raised $5 million from British funding supervisor Baillie Gifford’s Pacific Horizon Investment Trust. Zomato earlier raised $150 million from current investor Ant Financial, an affiliate of Alibaba.

The firm has additionally launched the ‘Feed the Daily Wager’ initiative to help and guarantee meals for employees at development websites, outlets, eating places, supply workers, and native transport techniques who earn on day by day foundation.

As a part of this marketing campaign, the meals supply big is offering ration kits to the day by day wager communities which can be presently unable to help their household’s meals requirement.

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