The Competition Commission of India (CCI) has approved foodtech major Zomato’s request to acquire an approximately 9.3% stake for $100 million in grocery delivery service app Grofers India and its wholesale entity Hands-on Trades.
The regulatory body today in a tweet wrote that it has approved the “proposed acquisition by Zomato of approximately 9.3% stake in Grofers India and Hands-on Trades.”
In late June 2021, Zomato had sought CCI’s approval to make a $100 million investment in Grofers at a billion-dollar valuation, making it another unicorn startup in the country.
The development is part of Zomato’s push towards the grocery delivery segment, where its competitor Swiggy doubling down with Instamart. Earlier this week, Swiggy had announced the expansion of its grocery delivery service Instamart to five more cities in the country. The company committed to delivering essentials in 15-30 minutes.