Zomato’s $100 million investment in Grofers. Zomato, which is exploring public markets later this year. Has agreed to invest $100 million in online grocer Grofers for a roughly 10% stake.
According to TechCrunch, the planned investment would value Grofers. A seven-year-old company that includes SoftBank among its investors, at more than $1 billion.
Zomato’s planned investment is part of a larger transaction that is likely to include participation from Tiger Global and SoftBank Vision Fund 2. According to the article, Zomato said that company had no remark to make.
Grofers and Zomato’s executive teams have been close for years and started investigating potential venture early this year.
Both companies are also considering the possibility of Zomato purchasing a majority interest in Grofers in the coming quarters. But no decision his take and the possibility is not fully explore until Zomato goes public, the source told TechCrunch.
Zomato, which bought Uber’s Indian food delivery business earlier this year. Has informed some of its big investors that it sees a future in which the company has grown well beyond the food delivery category. The person said on condition of anonymity due to the nature of the discussions.
Grofers has seen a dramatic increase in popularity over the last year as many Indian governments implemented stringent lockdown measures to limit the virus’ spread.