Zomato, an online food delivery service, is planning to add an online grocery store to its app in the near future.
Zomato, an online food delivery service, is planning to add an online grocery store to its app in the near future. Today, the corporation announced that it will re-enter the online grocery delivery market.
During the IPO announcement, the company revealed its $100 million investment in Grofers, an online grocery company. Zomato attempted an online grocery business last year, but it quickly shut down. Zomato’s competitor, Swiggy, already has a presence in this market.
Meanwhile, the restaurant industry group National Restaurant Association of India (NRAI) has contacted the fair trade regulator Competition Commission of India (CCI) for a full investigation into the food aggregators, alleging “anti-competitive activities” by Zomato and Swiggy.
Tata Digital recently purchased a majority share in BigBasket, prompting Zomato’s statement. Furthermore, Zomato’s HyperPure programme provides restaurants with fresh and high-quality supplies such as vegetables, fruits, groceries, spices, and other items.
Zomato also entered the health and dietary supplement sector earlier this year. Deepinder Goyal, the company’s founder and CEO, alluded to the arrival of functional meals in a tweet, writing, “Functional foods coming soon to your favourite food app.” Nutraceuticals are dietary foods that include nutrients.
Zomato disclosed the investment when it announced its first public offering on Thursday. Akshant Goyal chief financial officer stated that “Grocery is one of the biggest opportunities right now, and it is still in its early stages, but it is developing rapidly.
So, I believe we are actively experimenting in the space, having recently invested an amount of $100 million in Grofers for a minority stake with the goal of gaining additional exposure to space and developing our own strategies ” The company however did not specify when this feature will be available.
The company’s Red Herring Prospectus states that “For the benefit of our customers, we will invest in new goods, technologies, and features.
For example, we’re in the process of launching a grocery delivery marketplace as a test on our platform. We intend to keep innovating in order to provide our clients with more personalisation and new experiences “
In India, the food industry is severely underdeveloped, with restaurants accounting for only 8-9 per cent of total food consumption.
Zomato promises to serve the online food delivery market by combining the services of Yelp, DoorDash, and OpenTable into a single platform. The corporation made a strong comeback from the negative effects of the COVID-19 epidemic, reporting the highest quarterly GOV (Gross Order Value) of $451 million.
Zomato announced on Thursday that it’s Rs.9,375-crore initial public offering (IPO) will open for subscription next week. Investors can bid in lots of 195 equity shares or multiples of that number. To purchase a single lot of Zomato at the highest price band, investors will need to spend Rs.14,820.
On Tuesday, July 13, 2021, the anchor component is expected to open one day before the initial public offering.
The share allotment will take place on July 22, 2021, according to the red herring prospectus (RHP), and Zomato shares are slated to be listed on the BSE and NSE on July 27, 2021.
The money raised through the IPO will be used to fund organic and inorganic growth initiatives, with up to 25% going to general corporate purposes, according to the business.
Zomato, on the other hand, stated that it has no ambitions to launch a new payments business and that this was an RBI requirement for payments made on the site.
