Zomato, Grofers Deny Reports of Merger Talks

Gurugram-based food delivery platform Zomato and due east-grocer Grofers on Tuesday refuted reports that they are in acquisition or merger talks later reports surfaced that Zomato may larn Grofers for nearly $750 million.

Flush with funds, Zomato currently partnered Grofers for the delivery of essential items – along with other FMCG and grocery stores — to see the surge in need amongst social distancing and nationwide lockdown that has at present been increased till May iii.

In a argument shared with IANS, Zomato said that the visitor has partnered with Grofers, along with other FMCG companies, local groceries stores and modern retail chains, to airplane pilot its grocery delivery service. "We are not enlightened 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'south biggest online grocery retailer and has been growing at 2x every half-dozen months."

Later initial hiccups, Zomato has started grocery delivery in over 80 Indian cities with supplying essentials like aata, dal, milk, vegetables and items and for this, it has partnered existing players similar Grofers.

According to Prabhu Ram, Head-Industry Intelligence Group, CyberMedia Enquiry (CMR), companies are looking at creative pivots to stay relevant by pursuing new growth opportunities on the back of the new coronavirus pandemic.

"Expanding into almost adjacencies is a given for companies, such every bit Zomato. From Zomato'south perspective, a partnership or acquisition of Grofers would provide it a expert leg-up in its competition with Swiggy to win big in the grocery delivery segment," Ram told IANS.

Online food and grocery retail is expected to touch $x.5 billion past 2023, according to a recent written report by Bengaluru-based market place consulting business firm Redseer.

Zomato CEO Deepinder Goyal who is bullish on online delivery of essential items, has said that their delivery network in the country is simply second to Bharat Post.

"We are putting in every try to brand sure that we put it to practiced use to serve the community. Nosotros'd like to thank the government regime, grocery stores, FMCG companies & other get-go-ups that take come forward to partner with usa and support the community in this endeavor," Goyal said recently.

Zomato is currently valued at nearly $3.two billion while Grofers' valuation is around $650 1000000. Menlo Park, California-based Sequoia Upper-case letter is a mutual investor in both the commitment platforms. Zomato in January caused Uber's Food delivery business in Bharat – UberEats — in an all-stock deal for well-nigh Rs 2,500 crore. Uber has 9.99 per cent stake in the Goyal-led nutrient commitment platform.

Japanese conglomerate SoftBank, the largest investor in Grofers, is also probable to pump in around $100 million in Zomato.

Media reports said terminal week that Zomato has raised $five million from British investment director Baillie Gifford's Pacific Horizon Investment Trust. Zomato earlier raised $150 one thousand thousand from existing investor Ant Fiscal, an chapter of Alibaba.

The company has also launched the 'Feed the Daily Wager' initiative to support and ensure meals for workers at construction sites, shops, restaurants, delivery staff, and local transport systems who earn on daily basis.

As part of this campaign, the nutrient delivery behemothic is providing ration kits to the daily wager communities that are currently unable to back up their family's nutrient requirement.

Source: https://beebom.com/zomato-grofers-merger-reports-denied/

Posted by: collinstergelet.blogspot.com

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