Zomato Is Supposed to Make a Takeover Offer for Privately Held Shiprocket

In the tech realm, Zomato, a prominent food delivery firm, seeks to acquire Shiprocket, an Indian e-commerce shipping startup, with a speculated offer of $2 billion. This potential deal remains undecided, although it marks Zomato's bid for expansion in the e-commerce sphere.

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In a strategic move within the technology sector, Zomato Ltd, a well-established name in food delivery, has reportedly presented an acquisition proposal to acquire Shiprocket, an Indian startup specializing in e-commerce shipping solutions. Sources familiar with the matter disclosed this significant development, highlighting Zomato's endeavor to widen its market influence beyond the food delivery domain.

The offer extended by Zomato values Shiprocket at an estimated $2 billion, showcasing the substantial interest and commitment Zomato holds in expanding its operational scope. Confidential informants, speaking on anonymity, shared insights into this prospective acquisition, shedding light on Zomato's intent to venture into the burgeoning e-commerce landscape.

Despite the hefty valuation and the strategic advantage it could offer, a final decision regarding the acquisition remains pending. Sources close to the matter emphasized that Zomato holds the option to abstain from pursuing the deal with Shiprocket. Both Shiprocket and Zomato, headquartered in New Delhi, refrained from commenting on these ongoing discussions, maintaining confidentiality and discretion regarding their business operations.

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Shiprocket, spearheaded by Saahil Goel, its co-founder and CEO, previously secured funding in August 2022, valuing the company at $1.23 billion, as per PitchBook data. Noteworthy backers of Shiprocket include Bertelsmann India Investments, Temasek Holdings Pte, PayPal Ventures, and Tribe Capital. Zomato's backing of Shiprocket in 2021 underscores the budding interest in diversifying its investment portfolio.

Zomato's market performance since its IPO in July 2021, showcasing a 68% increase in its shares, outshines the 34% growth of the Nifty 50 Index during the same period. This potential acquisition of Shiprocket symbolizes Zomato's strategic expansion endeavors in the dynamic e-commerce ecosystem, aiming to leverage Shiprocket's expertise to fortify its foothold in this evolving market segment.