Grofers Turns Unicorn! Zomato Allowed To Buy 9.3% In Grofers For Rs 1000 Crore
The Competition Commission of India (CCI) has approved Zomato’s proposal for a 9.3% stake in Grofers and this would be the meal delivery aggregator’s first foray into online grocery retail.
“CCI approves proposed combination involving the acquisition by Zomato Limited (Zomato) of approximately 9.3 per cent stake in each of Grofers India Private Limited (Grofers India) and Hands-on Trades Private Limited (HoT) along with certain rights in each of the targets,”
CCI said in a statement on Friday
Zomato To Invest In Grofers India
Grofers is a key player in the online grocery retailing market. Zomato just invested $100 million for a minority investment in Grofers, The company aims to expand its app to include a supermarket delivery feature.
“Commission approves proposed acquisition by Zomato of approximately 9.3% stake in Grofers India and Hands-on Trades,” said CCI in a tweet.
Details Of The Transaction
Now in the last month, Zomato and Grofers applied to the Competition Commission for permission to buy a minority stake in the Gurugram-based startup. They have mentioned in the filing that the proposed transaction will not affect the competitive environment in Indian Market
While the transaction’s terms are still being worked out, media reports say Grofers had signed a deal with Zomato and Tiger Global to raise $120 million. Grofers will most likely enter the coveted club of unicorns if the deal goes through, as it will be valued at over $1 billion.
Can Zomato Ace The Online Grocery Game?
It’s worth mentioning that Zomato is looking to re-enter the e-grocery market through Grofers. Swiggy, too, has been expanding Instamart to deliver groceries and other necessities in real-time.
There will be tough competition in this e-grocery game as giants like Tata-owned BigBasket and Reliance’s JioMart have a majority market share. There is another online grocery delivery app like Swiggy, Dunzo, Amazon, and Flipkart that we adore because of their quick service.