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Ahead Of IPO, Zomato In Talks To Invest $100 Million In Grofers At A Billion Dollar Valuation: Report
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Gurugram based IPO-bound online food delivery platform Zomato is said to be in talks with e-grocer Grofers to invest $100 million in the latter at a valuation of a whopping $1 billion, reports The Economic Times.
Also a Gurugram based startup, Grofers is witnessing a year-on-year growth of about 110 per cent. Grofers recently said it is currently at a run rate of $1 billion in annual gross merchandise value (GMV).
The company had been until recently looking to list on the United States (US) based technology-heavy Nasdaq. However, it was later reported that the company has scrapped the plan and will continue to remain private.
Interestingly, Zomato had last year engaged with Grofers for a potential all-stock deal which would have merged the two companies. However, the deal fell through at the onset of the COVID-19 pandemic.
It should be noted that Softbank Vision Fund (SVF) holds a majority 51.9 per cent stake in Grofers. Zomato's investment in Grofers would thus gain much significance as SVF is said to be close to investing as much as $450 million in Zomato's rival platform Swiggy.
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