Zomato makes offer to acquire Shiprocket
What's the story
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 told the business news wire.
Details
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.
Insights
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%.