Zomato to re enter e-grocery delivery with Grofers acquisition-IPO to open on 14 July
Online Food Delivery Giant Zomato will soon come up with an e-grocery facility at its platform following its $100 million investment in e-grocery platform Grofers, Zomato launched its e-grocery business last year but it failed to take off due to stiff market competition in the segment from Swiggy, BigBasketand others.
Notably, Tata Digital recently acquired a majority stake in BigBasket,
Deepinder Goyal-led company has also entered into the dietary food segment, also called nutraceuticals. Also, Zomato’s HyperPure Initiative already caters to fresh and high-quality supplies, including veggies, fruits, groceries, and spices, to restaurants, which strengthens Zomato’s position in the market.
The announcement comes days ahead of the launch of Zomato’s Initial Public Offering (IPO) on July 14, The company has fixed the price band for its much-awaited IPO at Rs 72-76 per share, It will open for subscription on July 14 and close on July 16. This offer will be the largest after the SBI Cards and Payment Systems offer worth Rs 10,355 crore launched in March 2020.
Speaking about the IPL, Zomato said, “We thought it was good time to go public. We are an Indian homegrown brand, we have customer love here, made sense to go for IPO in India”.
Gaurav Guptathe co-founder of the food delivery giant, said they will invest more in customer acquisition. “ Customer love should help a little bit in terms of retail participation”, he said.
Zomato said its post-money valuation at the upper band will be Rs 64, 365 crores. Gupta said, “The valuation is always about what the current strength of the business is and what the future potential of the business could be”.
Zomato plans to raise Rs 9,375 crore through the share sale. The face value is Rs 1,00 per equity share. Zomato filed its draft red herring prospectus(DRHP) in April 2021 with SEBI. The Zomato IPO has been prepared from July 19 to July 14.