Restaurant aggregator and food delivery start-up Zomato recently acquired UberEats and now it has its eyes set on Grofers.
According to the reports, Zomato has been in talks with the SoftBank- backed e-grocers for an all-stock deal.
This comes at a time when the demand for home delivery of essentials is significantly high due to the nationwide lockdown.
Value of Grofers in the deal
As per the sources cited in reports from Entrackr and Economic Times, Zomato is in talks to acquire Grofers. The deal, which is in early talks as of now, might value the e-grocer at around $750 million.
The sources have informed that the discussions are currently at the founder and company level. If all goes well, things may move to the board level.
Investment from SoftBank
While speaking to ET, the sources informed that SoftBank, which is the main investor of Grofers, may invest $100-200 million in the merged entity. The investment will come through SoftBank’s venture capital arm ‘Vision Fund.’
It must be noted that Zomato and Grofers have already joined forces for Zomato Market. This service allows Zomato to deliver essentials and groceries from local stores that have tie-ups with Grofers.
The deal is not official yet
There is no official word on a possible Zomato-Grofers merger yet. In a tweet, Saurabh Kumar, founder of Grofers, wrote “Despite what sources say, the only discussion we are having @Grofers is how to scale our supply chain to serve the unprecedented demand. We have a responsibility to our customers and country at this time and our teams are 100% focused on that.”
No clarity from Zomato or SoftBank
SoftBank refused to comment on the speculation.
A spokesperson from Zomato said, “We have partnered with Grofers, along with FMCG companies, local grocery stores, and retail chains, to pilot our grocery delivery service. We are not aware of any other conversation with Grofers,”
The deal (whenever it goes through) will help Zomato take on competitors like Swiggy and others who are operating or entering into the delivery of groceries and essentials.