Food delivery platform Zomato has sought approval from India’s anti-monopoly watchdog to invest in e-grocery startup Grofers. The IPO-bound company filed a notification with the Competition Commission of India to acquire a 9.3 percent stake in Grofers, according to Economic Times.
The $100 million investment by Zomato is likely to make Grofers the newest unicorn. A unicorn is a private company with a valuation over $1 billion. Gurugram-based grocery delivery startup Grofers raised $120 million from IPO-bound food delivery platform Zomato, Moneycontrol had reported earlier.
According to the document filed with CCI, Zomato has mentioned that the transaction will not lead to any impact on the competitive landscape, the financial website said.
According to RedSeer Consulting, e-groceries could account for 3 percent of India’s grocery market by 2025 – amounting to $24 billion in market value. India’s grocery market size is more than $850 billion in 2025 with a compound annual growth rate (CAGR) of 8 percent, it said.
Food delivery platform Zomato filed preliminary papers with capital market regulator Securities and Exchange Board of India (Sebi) to raise Rs 8,250 crore through an initial share-sale in late April. The initial public offer (IPO) comprises fresh issue of equity shares worth Rs 7,500 crore and offer for sale to the tune of Rs 750 crore by Info Edge (India) Ltd, draft red herring prospectus filed with Sebi showed, PTI said.