India’s largest food delivery company Zomato has decided to buy stake in Grofers. Negotiations for the deal between Grofers and Zomato are in the final stages. According to media reports, Zomato can invest $20,000,000 in grofers.
The valuation of the Grofers for this investment has been kept at $ 10000000000. In this way, Zomato can buy more than 10% stake in Grofers.
Let us tell you for information that the country’s largest food delivery company Zomato recently decided to launch its IPO. This was the first IPO of any startup in India. The IPO has been approved by the market regulator SEBI. Zomato submitted its papers for this IPO in April. However, the dates of the IPO have not been announced yet.
Zomato wants to compete with Swiggy
There are currently two big food delivery companies in India. One of which is swiggy and the other is zomato. Recently, swiggy started delivery of other goods apart from food delivery. In which there are grocery books and other essential services.
Swiggy also recently started the delivery of medical equipment and medicines. While still Zomato is active only in the food delivery market. But now Zomato has decided to compete with Swiggy in this matter. Under this, Zomato wants to buy its stake in Grofers. So that it can increase its delivery network and compete with swiggy.
Let us tell you for information that the world’s largest e-commerce company Amazon has also made preparations to enter the food delivery market in India. For this, Amazon is also doing testing in Bangalore. Experts are expecting that soon Amazon’s food delivery service can start across the country.