Zomato seeks CCI nod for about 10% stake in Grofers

Mumbai: Resturant discovery and food-delivery platform Zomato has sought an approval from India’s anti-monopoly watchdog to invest in e-grocer Grofers. The IPO-bound company filed a notification with the Competition Commission of India to acquire a 9.3% stake in Grofers.

According to the document filed with CCI, Zomato has mentioned that the transaction will not lead to any impact on the competitive landscape.

ET was the first to report on the deal on May 7 and subsequently about the CCI filing on June 30.


As reported earlier, Grofers has closed a $120 million investment from Zomato and Tiger Global valuing it little over $1 billion, cementing its place in the growing pool of unicorns. Tiger GlobaL is a common investor at the two companies.

The development comes as Zomato’s rival Swiggy is aggressively pushing daily essentials delivery through Supr Daily and quick grocery delivery service Instamart. ET reported April 15 that the SoftBank Vision Fund is close to deploying $450 million in Swiggy, largely to help it expand beyond food delivery.

To add to the competition, Tata group acquired a majority stake in BigBasket and invested another $200 million in primary capital in the company. Horizontal e-tailers such as Amazon and Walmart-owned Flipkart are also ramping up grocery plays as consumers increasingly migrate online for essentials.