Zomato begins pilot in Delhi for grocery delivery
Earlier this month, Zomato approached the Competition Commission of India (CCI) to acquire 9.3 percent stake in e-grocery startup Grofers. As per the filing, Zomato will acquire 9.3 percent stake in Grofers' subsidiary, Hands on Trade (HoT) Pvt Ltd, along with certain rights in the collective company — Target (which includes Grofers India, HoT, and Grofers International).
In its conference call, the company had clarified that "it is actively looking at the space from an experimental point of view right now, and once we have conviction in the business model, we will look at it more".
During the first wave of coronavirus, Gurugram-based Zomato launched its grocery and essentials delivery service Zomato Market, which was available across India. At the time of its IPO launch, Zomato in its red herring prospectus said that it will invest in new products, technologies and features for the benefit of its customers. "For example, we are in the process of rolling out a grocery delivery marketplace on our platform on a pilot basis," it added.
Zomato's rival Swiggy also offers Supr Daily, Swiggy’s daily grocery delivery service, present across major Indian cities, which is reaching out to new users every month.
Zomato recently became India's first tech unicorn to go public. On July 23, Zomato opened at Rs 116 per share on NSE and rose rapidly to a level of Rs 138, before closing at Rs 125. The foodtech giant exceeded all expectations on day one with a 66 percent rise in share price and a market capitalisation of little more than Rs 98,000 crore ($13 billion approximately). On Thursday, the last traded price of Zomato stood at Rs 142.25.