Zomato set to lead Rs 3,500 crore investment in grocery delivery app Grofers

Fresh from a successful IPO, Zomato Ltd is all set to lead a Rs 3,500 crore investment in grocery delivery app Grofers, Livemint reported, citing sources.

The Deepender Goyal-led company is keen to "strengthen its network in the grocery delivery space" after seeing a rise in online orders during the Covid-19 pandemic. Zomato, which already invested $100 million (Rs 745 crore) earlier this month for a 9.3 per cent stake in Grofers, will bring along global investors to help fund the now over $1 billion-valued unicorn.

Zomato, which had forayed into this market during the first Covid-19 lockdown last year, shut down their grocery delivery services soon after the lockdown eased. One of the reasons it is eying a larger share in Grofers is also to compete with rivals Swiggy's instamart service.

Its existing grocery service, called HyperPure, delivers high-quality ingredients — fruits, vegetables, spices — to restaurants, the story added. Grofers will probably hope that Zomato's popularity helps increase its market share and give the wings needed to take on BigBasket.

It remains to be seen who will join the list of impressive shareholders — Zomato, SoftBank — to give Grofers the financial and logistical boost it seeks.