After Blinkit, online food delivery platform, Zomato, is gearing up for another huge acquisition. Now, the company has offered to acquire domestic logistics solutions provider ShipRocket for about $ 2 billion (more than Rs 16,600 crore). Bloomberg, citing people aware of the development, reported that Zomato has offered to buy the company and no final decision has been taken yet on the deal.
Past acquisitions by Zomato
In August last year, Zomato-backed ShipRocket raised $33.5 million giving it a valuation of about $1.2 billion. In the same month, Zomato completed the acquisition of quick commerce company Blinkit (formerly Grofers) and its warehousing and support services business. Zomato's board had approved a transaction worth Rs 4,447 crore for the acquisition of Blinkit. The subsidiary business was purchased for Rs 61 crore.
Zomato shares continue upward trend
This year, the bullish phase of Zomato's stock continued. Zomato's shares have now crossed Rs 128 from Rs 46 in January giving it a return of 117.47 percent. Even on Thursday, the stock rose by more than 2 percent. Market experts say that the rising trend in shares may continue further. Market experts say that the rising trend in shares may continue further with the company now making profits.
What is ShipRocket's business?
Launched in 2017, ShipRocket offers a technology stack to help retailers integrate their shopping websites on Shopify, Magento, WooCommerce, Zoho, and others. It also provides state-of-the-art fulfillment solutions with over 45 warehouses located across the country.
Meanwhile, ShipRocket is reportedly in talks with top VC firms to raise funds up to Rs 75-100 million led by US-based investment firm Tribe Capital. According to a TechCrunch report last week, quoting sources, 'Talks regarding funding are ongoing and terms may change.' Both Tribe Capital and ShipRocket did not comment on the report. Bengaluru-headquartered Shiprocket aims to be ready for IPO in the next 12 to 18 months. It aims to distribute around Rs 100 crore to SMBs in the next 12 months.
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