Zomato’s share price rose to a high of Rs 161.85 on the National Stock Exchange as against the previous close of Rs 156.55.
According to an ET report, this would mark the largest investment by Zomato so far in a company. The deal would imply a fresh turn in the food delivery battle with rival Swiggy into what is referred to as the ultrafast commerce segment – a category that has attracted significant amounts of global investor capital.
The financing plan could likely set a valuation for Grofers (led by Albinder Dhindsa) at around $1.5 billion, up from the $1 billion touched when Zomato initially invested $100 in a SoftBank-backed startup earlier in 2021, reports said.
Reports said that the big bet on Grofers comes after Zomato’s on-again, off-again attempts at grocery delivery over the past year. The fresh capital will hike Zomato’s holding in Grofers to about 30% if the transaction goes through. SoftBank Vision Fund holds almost 45% in Grofers as its largest shareholder, while Tiger Global and Sequoia Capital are common investors in Zomato and the grocery retailer.
After a stellar listing on Indian bourses in July, Zomato has embarked on a flurry of investments, including those in logistics technology firm Shiprocket and fitness platform Curefit.
