Food delivery platform Zomato, which is preparing for an IPO, is proceeding with its investment plan of $10 to 120 million in online grocery startup Grofers. Grofers has been valued at $1 billion for this investment.
Quoting sources related to the matter, it has been learned that this investment plan is in its final stages and it can be announced anytime in the next few weeks.
This investment plan in online grocery platform Grofers is running parallel to Zomato’s IPO plan. Let us inform that the market regulator SEBI has given its approval to the proposed IPO of Zomato. Zomato had filed papers related to its IPO with Sebi in late April. This will be the IPO of a company based on India’s much-awaited Internet business this year.
Sources in the know of the matter say that Sebi is likely to issue its final observation on the paper filed by Zomato for its IPO in the next few weeks.
Explain that the process of IPO proceeds only after SEBI’s final observation on the DRHP filed with SEBI of an IPO. The roadshow in the context of Zomato’s IPO received a great response from the investors. All the institutional investors are showing their interest in this IPO.
A source with knowledge of the matter told Moneycontrol that the deal between Zomato and Grofers is almost complete and is in the final stages of completion.
According to sources, there may be a merger of both, but nothing is going to happen as of now as it may delay Zomato’s IPO launch.
When contacted by Moneycontrol on the news, a Grofers spokesperson said that it does not comment on market speculation. At the same time, Zomato has not given any answer to this.
Let us inform that Saurabh Kumar, co-founder of online grocery firm Grofers, has exited from these unicorn startups. The company’s second co-founder and CEO Albinder Dhindsa has given this information by tweeting. Saurav Kumar’s decision to quit Grofers comes at a time when online food delivery firm Zomato is in talks to make a big investment in it.
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