Leading food delivery company Zomato has proposed a deal to acquire Indian e-commerce shipping start-up Shiprocket, according to Bloomberg. The potential acquisition values Shiprocket at around $2 billion (approximately Rs. 16,650 crore), sources who requested anonymity discussing confidential information said.
Zomato already owns about 8% stakes in Shiprocket
The final decision has yet to be made and Zomato may decide against moving forward with the transaction. Shiprocket, headed by co-founder and CEO Saahil Goel, secured funding in August 2022 at a valuation of $1.23 billion, based on PitchBook data. The start-up’s investors include Bertelsmann India Investments, Temasek Holdings Pte, PayPal Ventures, and Tribe Capital. Interestingly, Zomato already bought 7.89% stakes in Shiprocket back in 2021.
Zomato shares have recovered over 200% since all-time lows
Since its listing in July 2021 at Rs. 116 on NSE, Zomato’s shares have risen merely 9.78%. On a year-to-date (YTD) basis, Zomato’s shares have given a return of over 112%, outpacing the Nifty50 index, which saw a 16.8% increase during the same timeframe. The stock made an all-time high at Rs. 169 on November 16, 2021, and recorded an all-time low at Rs. 40.6 on July 27, 2022. Since its all-time low, the stock has recovered over 200%.