Zomato to invest $100mn in Grofers

Food delivery application Zomato is in talks with infuse around $100 million in e-grocer Grofers, two individuals up to date told ET, after conversations of a potential consolidation between the two fell through a year ago at the beginning of the Covid-19 pandemic.

Zomato’s investment is likely important for a larger financing round and may value the Gurugram-based online grocery firm at around $1 billion, sources said. This time the discussions have based on a capital mixture, unlike to a year ago when Zomato would have likely procured Grofers in an all-stock deal.

“Zomato has ambitions in the grocery segment and needs to cooperate with a forte grocery organization as opposed to fabricate something of its own. They need to remain focused on the food business,” an individual privy to the deal details said on the state of secrecy as the discussions are private.

Grofers which was hoping to list on the tech-heavy Nasdaq in the US through a Cantor Fitzgerald blank check firm, as revealed first by ET on February 24 is required to scrap the IPO plan and keep on excess private, said someone else up to date.