Update | December 21, 11:00 PM

Foodtech major has denied reports of making an offer of $2 Bn to acquire logistics startup Shiprocket.

In a filing with the bourses, the company ‘cautioned’ the investors against the incorrect reports floating in the market about any such move, adding that it has no plans for any acquisitions currently.

“We have noticed that there are certain news articles circulating in the mainstream media with the subject “Zomato offers to acquire Shiprocket for $2 billion”. We deny this statement and would like to caution investors against such incorrect news floating in the market. We remain focused on our existing businesses with no plans for any acquisition at this moment,” said Zomato in a filing with the BSE.

The company attributed the clarification to ‘abundant caution’ citing uncertainty that the reports may create in the market.

Original Story| December 21, 05:31 PM

Listed foodtech major Zomato has reportedly made an offer to acquire ecommerce logistics unicorn Shiprocket.

As per a Bloomberg report, Zomato’s offer values the SaaS logistics platform at about $2 Bn. Sources aware of the development told the publication that a final decision has not been made. Besides, Zomato could also opt against proceeding with a deal for the company, the report said.

Zomato and Shiprocket were not immediately available to comment on the development.

Shiprocket is an aggregator of third-party logistics companies and works with several courier partners, including Delhivery, FedEx, Aramex, Xpressbees, DTDC, and Shadowfax. Founded in 2017 by Vishesh Khurana, Akshay Gulati, Saahil Goel, and Gautam Kapoor, the startup had raised $185 Mn in its Series E round co-led by Zomato, Temasek, and Lightrock India. 

Later, in August 2022, the startup raised $33.5 Mn in a Series E2 funding round led by Lightrock India with participation from Temasek, Bertelsmann, Moore Strategic Ventures, PayPal, and others, which valued the company at $1.2 Bn.

In October this year, Inc42 exclusively reported that Shiprocket was in advanced talks to raise $10 Mn-$12 Mn from McKinsey & Company in a strategic funding round for business expansion.

Shiprocket reported a 3.6X widened net loss of INR 341 Cr in FY23, hurt by its multiple acquisitions. In fact, the startup blamed its two acquisitions – Omuni for INR 200 Cr and one of its rivals Pickrr for $200 Mn in FY23 – for the threefold increase in loss. 

Meanwhile, its operating revenue increased 78% year-on-year to INR 1,089 Cr in FY23.

On the other hand, after struggling for a year, Zomato has started witnessing a revival in its business. The foodtech major also attained profitability in Q1 FY24, which helped the company’s share performance breach the INR 125 level for the first time in almost two years. The company also posted a profit in the second quarter of FY24.

Shares of Zomato are currently trading at INR 127.55 on the BSE and have gained over 100% year to date.