Food delivery platform Zomato has signed off on its long-held plan to invest in online grocery startup Grofers, according to unnamed sources, as per a Moneycontrol report.
Sources told Moneycontrol that the deal has officially been signed on June 29 2021, as part of which Zomato and existing investor Tiger Global will invest around USD120 million in the grocery startup at a valuation of over one billion dollars. Tiger will be investing a small amount. With this investment, Grofers will turn a unicorn, with its valuation of a billion dollars.
A week ago, Grofers co-founder and CEO Albinder Dhindsa had hinted at a new funding cycle in an address to the startup’s team. “After coming out of the second wave, and at a point where our next funding round is secure, I think it is time to kickstart a lot of initiatives that I have been waiting for the right time to begin,” he wrote in a blog post.
Grofers co-founder Saurabh Kumar — who announced his exit from the startup on June 18 — along with Dhindsa together own just under 8 percent in the company, with the majority currently being held by SoftBank. Other investors include Tiger Global, Sequoia Capital, and DST Global.