Zomato invests in magicpin, Shiprocket, and Curefit; looks to pump additional $1B in Indian startups
Foodtech giant— which went public this year — is looking to make several investments in the Indian startup ecosystem. Having already pumped in $275 million in Indian startups, Zomato is looking at deploying an additional $1 billion within the next two years.
With a market cap of over $14.3 billion, in a stock exchange filing, the company on Wednesday said it will invest $60 million in social rewards startup magicpin, $75 million in logistics startup Shiprocket, and $50 million in Curefit.
The Gurugram-based foodtech major will be acquiring a 16 percent stake in magicpin. Deepinder Goyal, Founder, Zomato, said, “What Zomato did with restaurants, magicpin is doing for the entire offline shopping experience. magicpin is one of the most important players in the nascent hyperlocal ecommerce space (both offline and online) – and we expect magicpin to create a tremendous amount of value for its merchant partners and customers going forward.”
Zomato added it will be selling its fitness service Fitso to Curefit for $50 million for a stake in the startup. It will also invest an additional $50 million in the Bengaluru-headquartered startup.
According to the stock exchange filing, Zomato will gain close to a 6.4 percent stake in Curefit and help it look at cross-selling benefits between Zomato and Curefit.
The funding into Shiprocket is part of a larger $185 million financing round, where the logistics company's valuation will be close to $930 million.
Deepinder added he is exploring investment opportunities in his personal capacity in over half a dozen startups in the past few months. Moreover, Zomato will be closely looking at quick-commerce businesses as it finds them promising.
However, the foodtech company will not be building its own quick-commerce businesses.
Announcing its quarterly earnings on Wednesday, Zomato said its consolidated revenue from operations rose by 140 percent and the delivery cost per order increased by Rs 5 per order in the second quarter.