Private Equity

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Food delivery major Zomato invests $130-M in online grocery Grofers' entities

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Gurugram-based, publicly-listed food delivery major Zomato has invested INR 741.2 crore (USD 100 million) in Grofers. Grofers' consumer-facing entity (Grofers India Pvt Ltd) has allotted 3,248 preference shares and 1 equity share at an issue price of INR 15,95,000 per share to raise INR 518.2 crore or USD 70 million from Zomato Ltd. The grocer's wholesale procurement arm Hands-On Trade has also raised INR 223 crore (USD 30 million) from Zomato. Following the investment, Zomato has picked up 9.16% and 8.94% stake in Grofers's B2C and B2B entities respectively. Grofers was reportedly valued at around USD 644 million during its last tranche of funding from Chicago-based asset management firm Euler Fund in February this year. The deal would bring back grocery ordering on Zomato after close to a year. It entered the grocery business through ‘Zomato Market' in April 2020 but shut it down within a few months.